Scatec ASA and Partners Forge Renewable Ammonia Pact with Yara Clean Ammonia for Egypt

Scatec ASA and Partners Forge Renewable Ammonia Pact with Yara Clean Ammonia for Egypt

(IN BRIEF) Scatec ASA, in collaboration with ECHEM and MOPCO, has finalized a Heads of Terms agreement with Yara Clean Ammonia to secure the offtake of renewable ammonia produced in Egypt. The project involves developing up to 480 MW of renewable energy capacity and a 240 MW electrolyzer facility to produce renewable hydrogen. This hydrogen will be used to manufacture up to 150,000 tonnes of renewable ammonia annually at MOPCO’s facility in Damietta, Egypt. The initiative supports Egypt’s green energy strategy and positions the country as a significant player in the global market for renewable ammonia.

(PRESS RELEASE) OSLO, 2-Jul-2024 — /EuropaWire/ — Scatec ASA, alongside its partners ECHEM and MOPCO, has reached Heads of Terms with Yara Clean Ammonia for the offtake of renewable ammonia produced in Egypt. This agreement marks a significant milestone in their joint effort to advance sustainable energy solutions.

Under the agreement, Scatec, ECHEM, and MOPCO will develop and build up to 480 MW of renewable energy capacity, along with a 240 MW electrolyzer facility to produce renewable hydrogen. This hydrogen will serve as feedstock for renewable ammonia production at MOPCO’s existing facility in Damietta, Egypt, with an anticipated annual capacity of up to 150,000 tonnes.

Scatec CEO Terje Pilskog expressed enthusiasm about the partnership, emphasizing Scatec’s strategic focus on renewable hydrogen projects linked to ammonia production. “This collaboration with Yara Clean Ammonia underscores our commitment to sustainable growth and leveraging our expertise gained from similar projects,” he stated.

Yara Clean Ammonia CEO Hans Olav Raen highlighted the importance of this project in enhancing their portfolio of low-emission ammonia sources. “Once operational, the renewable ammonia will bolster our ability to meet diverse market demands reliably,” Raen noted.

Egyptian Minister of Petroleum and Mineral Resources, H.E. Tarek El Molla, hailed the agreement as a pivotal step in Egypt’s low-carbon hydrogen strategy. “This partnership will help secure investments in renewable hydrogen, supporting Egypt’s vision to become a leading hub for green hydrogen,” he stated.

ECHEM President & Chairman Eng. Ibrahim Mekki emphasized the project’s alignment with their sustainability goals and its potential to drive innovation in the petrochemical sector. “Developing renewable ammonia is integral to our strategic objectives and will contribute significantly to Egypt’s green energy ambitions,” Mekki affirmed.

MOPCO Chairman and Managing Director Eng. Ahmed Mahmoud El-Sayed expressed pride in the collaboration’s progress. “The renewable ammonia production facility, through Damietta Green Ammonia Company (DGA), will position Egypt as a key exporter in the global market,” El-Sayed remarked.

EIB Vice President Gelsomina Vigliotti underscored the bank’s commitment to supporting renewable hydrogen initiatives in Egypt. “Accelerating renewable hydrogen production will enhance industrial competitiveness and unlock new export opportunities,” Vigliotti highlighted.

The agreement signifies a major advancement towards sustainable energy practices in Egypt, promising substantial environmental benefits and economic growth opportunities.

About Yara Clean Ammonia (YCA)
Yara grows knowledge to responsibly feed the world and protect the planet. Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market expected to grow substantially over the next decades. We aim at significantly strengthening our leading global position as the world’s largest ammonia distributor, unlocking the green and blue value chains, and driving the development of clean ammonia globally.

Building on Yara’s leading experience within global ammonia production, logistics and trade, Yara Clean Ammonia works towards capturing growth opportunities in low-emission fuel for shipping, power generation, low-carbon food production and ammonia for industrial applications.

Yara Clean Ammonia operates the largest global ammonia network with 15 ships and has, through Yara, access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world. Revenues and EBITDA for the FY 2023 were USD 1,9 billion and USD 101 million respectively. Yara Clean Ammonia is headquartered in Oslo, Norway.
www.yaracleanammonia.com

About Scatec
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy emerging markets. As a long-term player, we develop, build, own, and operate renewable energy plants, with 4.6 GW in operation and under construction across four continents today. We are committed to grow our renewable energy capacity, delivered by our passionate employees and partners who are driven by a common vision of ‘Improving our Future’. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.

About ECHEM
The Egyptian Petrochemicals Holding Company (ECHEM) was established in January 2002 to manage and develop the Petrochemicals industry in Egypt through new promising areas of investment. ECHEM priority is to enhance the growth of Petrochemical industry through implementing The National Petrochemicals Master Plan with the target of realizing the optimum utilization of natural gas in value added products. ECHEM is entitled to develop a competitive petrochemicals industry based on local human and natural resources, using state-of-the-art technology and through implementing a pre-set flexible strategy. ECHEM seeks a high standard of performance, etching a prominent position in the competitive environment, and aims for efficient and sustainable use of natural resources. To learn more, visit www.echem-eg.com

About MOPCO
Misr Fertilizers Production Company “MOPCO” is considered as the largest producer of nitrogen fertilizer products in Egypt and one of the major producers of these products in MENA. It was established in 1998 on plot of 400,000 m2 inside Damietta Public Free Zone next to Damietta port located in the middle of the world, with assets exceeding 50 billion Egyptian Pounds.

MOPCO specializes in the production of urea as a basic product with 2 million tons production capacity per year and anhydrous ammonia as an intermediate product with 1.2 million tons capacity per year through their three plants using advanced EU technologies that achieves the highest levels of product quality, safety, and environmental protection. MOPCO is exporting approximately 50% of its urea production and 40% of its anhydrous ammonia production to the international markets especially EU, while 50% and 60% of its production of urea and anhydrous ammonia respectively are sold in the local market.

Media Contacts:

Yara Clean Ammonia:

Media inquiries:
Hilde Steinfeld
hilde.steinfeld@yara.com, mobile: +47 993 53 030

Investor Relations in Yara International:
ir@yara.com

Scatec:

Investor Relations:
Andreas Austrell
andreas.austrell@scatec.com
mobile: +47 974 38 686

Media inquiries:
Meera Bhatia
meera.bhatia@scatec.com
mobile: +47 468 44 959

SOURCE: Yara International ASA