Egypt inks green ammonia production agreement with Norwegian Scatec, Yara
Updated 7/1/2024 5:42:00 AM
Arab Finance: The Egyptian Petrochemicals Holding Company (ECHEM), Misr Fertilizers Production Company (MOPCO), and the Norwegian companies SCATEC and Yara International have penned an agreement for the production of green ammonia in Damietta, as per a statement on June 29th.
The project aims to enhance the use of new and renewable energy sources and reduce carbon emissions by decreasing reliance on conventional energy sources, Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker said.
With an expected production capacity of 150,000 tons of green ammonia annually, the initial investment cost of the project is approximately $890 million, Minister of Petroleum and Mineral Resources Tarek El-Molla said.
The project is set to generate up to 480 megawatts of renewable energy from wind and solar energies, El-Molla pointed out.
El Molla explained that the project would utilize the production capacities of MOPCO and ensure success in securing a buyer for the green ammonia produced, which is the Norwegian Yara.
Additionally, the project will include the establishment of a seawater desalination plant and a pier for exporting green ammonia from the port of Damietta, with operations expected to commence in 2027.
Notably, the joint agreement for the project was initially signed in February 2023.
The founding meeting of the project company, Damietta Green Ammonia Company, was held virtually on August 9th, 2023, marking it as the first company to be established electronically in Egypt.
A shareholders’ agreement was signed on December 2nd, 2023, between the Egyptian Petrochemical Holding Company, MOPCO, and SCATEC.
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