Scatec has entered into an agreement with Fertiglobe plc, a leading ammonia producer, and The Sovereign Fund of Egypt (TSFE), to jointly develop a 50 to 100 MW green hydrogen facility as feedstock for green ammonia production.
Scatec will build, operate and majority own the facility and a long-term off-take agreement will be entered into with Fertiglobe’s subsidiary EBIC. The facility will be located near EBIC in Ain Sokhna and is the first step towards developing a green hydrogen hub in Egypt. The parties will seek support from the Egyptian government for required regulatory approvals and sourcing of competitive renewable power from the grid. The project will be realized in close cooperation with leading hydrogen technology providers and multilateral development institutions for financing.
Required engineering and development, including structuring of commercial agreements for the new facility, will start soon with a target investment decision in 2022 and the start-up of the hydrogen facility by 2024.
