A consortium led by Norwegian renewable power producer Scatec ASA (OSL:SCATC) has inked an agreement to supply locally produced green ammonia to Yara Clean Ammonia, a division of Norwegian fertilizer giant Yara International ASA (OSE:YAR).
The deal with Yara supports a partnership involving Scatec, Egyptian Petrochemicals Holding Company (ECHEM), and Misr Fertilizers Production Company (MOPCO), established in 2023 to develop a renewable ammonia production facility in Egypt.
Under the agreement, the three partners will develop up to 480 megawatts (MW) of renewable power capacity and a 240-MW electrolyzer facility to produce green hydrogen. This infrastructure will facilitate the annual production of up to 150,000 tonnes of renewable ammonia at MOPCO's existing facility in Damietta port city.
The project, expected to require an initial investment of approximately USD 890 million (EUR 831.3m), is seeking financing from the European Investment Bank (EIB), for which Scatec has already signed a letter of intent (LoI).
Advancing through the newly-formed Damietta Green Ammonia Company (DGA), the project targets commissioning by 2027 pending a final investment decision (FID).
The agreement among Scatec, Yara, ECHEM, and MOPCO was formalized during the Egyptian-European Joint Investment Conference in Cairo, underscoring efforts to bolster Egypt's renewable energy and industrial sectors.
