Based on the award, Fertiglobe and Egypt Green Hydrogen have entered into a 20-year ammonia offtake agreement. The agreement was signed at the Egypt-EU Investment Conference in Egypt on 29 June 2024.
“The H2Global award represents a key milestone for the Egypt Green Hydrogen project in Ain Sokhna, Egypt” said Scatec CEO Terje Pilskog. “This demonstrates the competitiveness of green hydrogen and ammonia production in Egypt, driven by its abundant renewable energy resources and strategic geographical location. We are grateful for the Egyptian government's leading role in supporting this pioneering project and we look forward to continuing to work with the relevant stakeholders to establish Egypt as a regional green hydrogen hub. “With Fertiglobe securing an offtake agreement for ammonia, Egypt Green Hydrogen will accelerate the project's development and advance it towards financial close.”
In 2021, Scatec and partners agreed to develop, build, own and operate a 100 MW electrolyser facility to produce renewable hydrogen to be used as feedstock for the production of renewable ammonia at Fertiglobe's existing ammonia plant in Ain Sokhna, Egypt. The project will be powered by approximately 270 MW of solar and wind power capacity and deliver approximately 13,000 tonnes of renewable hydrogen and up to 74,000 tonnes of renewable ammonia annually.
Scatec is the lead developer and majority sponsor of Egypt Green Hydrogen with an ownership share of 52 percent and will provide EPC services in collaboration with Orascom Construction. Scatec will further provide O&M and Asset Management services for the project alongside key technology providers and project partners.
The next important milestones for the project are to select the electrolyser supplier and complete the project financing process with the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), Germany's development finance institution and KfW subsidiary DEG, British International Investment ( BII), and the US International Development Finance Corporation (DFC), which are providing competitive financing to support the first green hydrogen and ammonia project in Egypt. The partners expect to reach financial close in the first half of 2025.
“This award marks a significant milestone for Fertiglobe in advancing sustainable ammonia production and a further critical step towards FID of Egypt Green Hydrogen, expected in H1 2025” added Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe. “Our selection as the winning bidder in H2Global's pilot auction underscores our leadership in supplying low-carbon products and our commitment to shaping a more sustainable future, and I appreciate the work of our incredible team to make this award possible. We are leveraging this vital program which makes our investment in sustainable ammonia economically viable, supporting critical decarbonisation technology, while maintaining our disciplined growth strategy.”
The project is located in Egypt's Suez Canal Economic Zone (SCZONE), which seeks to become a major hub for green hydrogen industries.
The H2Global Foundation was established in 2021 to accelerate the emergence of markets for clean hydrogen and other zero- and low-emission technologies worldwide. This is done through market-based instruments, such as the H2Global mechanism, implemented by its subsidiary Hintco. The German Federal Government has committed 4.43 billion euros to this initiative.
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