During the Egyptian-European Investment Conference, Egypt signed the first binding contract to purchase green ammonia with the Norwegian company “Scatec” operating in Egypt and the company “Fertiglobe” for a period of 20 years. The conference, spanning two days, facilitated the signing of this historic agreement.
The Egyptian Cabinet announced the signing of two significant contracts for the purchase of green ammonia during the conference. One of these contracts marked the first binding contract with Fertiglobe for green ammonia worldwide. The second contract was signed with the Norwegian company Yara Clean Ammonia for a 20-year agreement to purchase green ammonia from the Damietta Ammonia Project.
Prime Minister Dr. Mostafa Madbouly met with key stakeholders involved in the agreements, including the CEOs of Scatec and Yara Clean Ammonia, the Minister of Petroleum and Mineral Resources, the Norwegian Ambassador to Cairo, the Chairman of the General Authority of the Suez Canal Economic Zone, and the Executive Vice President of Scatec for the Middle East and Africa.
The Egypt Green Hydrogen Alliance, led by Scatec, successfully signed the contracts and will be developing, building, and operating a green hydrogen production station in the Suez Canal Economic Zone. The project aims to produce 13,000 tons of green hydrogen annually, which will be converted into about 70,000 tons of ammonia using renewable energy sources.
The total investment for the project is estimated at $500 million and includes the construction of solar and wind energy production stations with a capacity of 270 megawatts. The long-term agreement secured by the project with Fertiglobe to purchase green ammonia for 20 years further solidifies its future success and contribution to the energy sector in Egypt.
Minister of Petroleum and Mineral Resources, Eng. Tarek El Molla, highlighted the confidence in the project and the investment climate in Egypt. The initial investment cost is projected at around $900 million, with a production capacity of up to 150,000 tons of green ammonia per year. The project also includes plans for the construction of a seawater desalination plant and a marine pier at Damietta Port for exporting green ammonia.