Egypt has signed its first binding contract to purchase green ammonia with Norwegian companies Scatec and Fertiglobe, which will last for 20 years. This significant milestone was announced by the Egyptian Cabinet, highlighting it as the first global agreement of its kind.
Another contract was also signed with Yara Clean Ammonia to purchase green ammonia from the Damietta Ammonia Project. The Egyptian Green Hydrogen Alliance, led by Scatec, Fertiglobe, Orascom Construction, and the Egyptian Sovereign Fund, played a crucial role in securing these contracts. The alliance is developing a green hydrogen production station with a capacity of 100 megawatts in the Suez Canal Economic Zone.
The project aims to produce 13,000 tons of green hydrogen annually, which will be converted into 70,000 tons of ammonia produced from renewable energy. The total investment for the project is $500 million, with plans to build solar and wind energy production stations to support the production processes. With long-term agreements in place, the project is set to supply green ammonia to Fertiglobe for the next two decades.
Minister of Petroleum and Mineral Resources Eng. Tarek El Molla highlighted the confidence in the project and Egypt’s investment climate. The initial investment cost is estimated at $900 million, with a production capacity of up to 150 thousand tons of green ammonia annually. The project also aims to generate renewable energy with a total capacity of up to 480 megawatts from wind and solar sources.
The scope of the project includes the construction of a seawater desalination plant and a marine pier in Damietta Port for exporting green ammonia. Operations are expected to start in 2027, showcasing Egypt’s commitment to sustainability and clean energy production.
In conclusion, Egypt has taken another significant step towards becoming more sustainable by signing contracts with Norwegian companies Scatec and Fertiglobe and Yara Clean Ammonia to purchase green ammonia produced from renewable energy sources. These agreements demonstrate Egypt’s commitment towards transitioning towards cleaner forms of energy while providing long-term benefits for both parties involved.
Prime Minister Dr. Mostafa Madbouly met with key figures from Scatec and Yara Clean Ammonia during this conference expressing appreciation for their cooperative relations with Egypt while emphasizing that this new deal marks an important milestone in Egypt’s efforts towards achieving sustainability goals.
Overall, these agreements represent a significant step forward towards creating a more sustainable future for both Egypt and Norway while also providing economic benefits through investments made by these companies in Egypt’s economy.
The Egyptian Green Hydrogen Alliance played a vital role in securing these contracts by developing a green hydrogen production station that will have a significant impact on reducing carbon emissions globally over time.
As we move forward into an increasingly sustainable future where countries focus on producing cleaner forms of energy while reducing their carbon footprint entirely possible thanks to innovative technologies like those being developed here today.
