Fertiglobe, Scatec and Egypt's sovereign fund to develop green ammonia project
Published by Nicholas Woodroof,
The facility will be located near Fertiglobe’s subsidiary EBIC in Ain Sokhna in Egypt and is a first step towards developing a green hydrogen hub in Ain Sokhna.
Under the agreement, Scatec will build, operate and majority own the facility, and EBIC will use the green hydrogen as a supplementary feedstock for the production of up to 90 000 tpy of green ammonia under a long term off-take agreement. The final investment decision is expected in 2022, and start-up is targeted for 2024.
The parties will seek support from the Egyptian government for required regulatory approvals and sourcing of competitive renewable power from the grid, with the intention to build out new solar and wind capacity to power Egypt’s green hydrogen ambitions in the years to come. The project will be realised 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 imminently with a target investment decision in 2022 and start-up of the hydrogen facility by 2024.
Ahmed El-Hoshy, CEO of OCI N.V. and CEO of Fertiglobe, commented: “We are pleased to partner with Scatec, a leader in the global renewables market and Egypt’s largest renewable power developer, to deploy cutting edge technology at world scale to start ramping up our green ammonia production profile. We are also pleased that the Sovereign Fund of Egypt is participating, underlining Egypt’s commitment to become a global leader in the renewables space. This project adds to our existing and rapidly developing low carbon portfolio of ammonia across our global platform, and Fertiglobe in particular is increasingly becoming the ideal springboard to capture the huge growth opportunities offered by the hydrogen economy.”
Raymond Carlsen, CEO of Scatec said: “We are proud to establish a strong partnership with Fertiglobe and the Sovereign Fund of Egypt to move the green agenda forward in Egypt. The development of this green hydrogen project builds on our long experience in project development, financing, and delivery of renewable energy projects in emerging markets. New business models and innovation have been at the core of Scatec since our inception, and we see green hydrogen as a natural part of our strategy and the renewable ecosystem in the years to come.”
Ayman Soliman, CEO of TSFE, commented: “We are pleased to be partnering up with Fertiglobe and Scatec who are pioneers in green hydrogen production, to provide a unique investment product that creates financial returns while nurturing the green economy at large. The Sovereign Fund of Egypt is a manifestation of Egypt’s 2030 Vision with the principles of sustainable development and impact investment instilled in its mandate, and this project is a cornerstone investment in our green sustainable portfolio build-up with many more to come.”
Incremental demand for low carbon ammonia from new applications is currently estimated in the range of 8 million t by 2025, growing to more than 25 million t by 2030 compared to a current global merchant ammonia market of approximately 20 million metric t.
Read the article online at: https://www.worldfertilizer.com/project-news/14102021/fertiglobe-scatec-and-egypts-sovereign-fund-to-develop-green-ammonia-project/
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