Scatec ASA’s Egypt Green Hydrogen project, in partnership with Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt and the Egyptian Electricity Transmission Company, reached a key milestone, after Fertiglobe secured a green ammonia offtake agreement with Hintco in Germany, through the first ever H2Global auction.
The new deal comes in line with the state’s commitment to directives of Egypt’s political leadership towards localising the green fuel industry and achieving the state’s strategy for diversifying energy sources and producing clean energy.
General Authority for Suez Canal Economic Zone (SCZone) said in statement that “Egypt Green Hydrogen” project in Sokhna’s integrated industrial zone was awarded a contract worth €397 million within H2Global auction to supply renewable ammonia to the European Union.
The project will supply ammonia at a price of€1,000 per tonne until 2033, which will be produced based on the use of green hydrogen.
Walid Gamal el-Din, Chairman of SCZone, reiterated on Friday SCZone’s full commitment towards achieving the state’s goals as well as implementing the political leadership’s directives regarding the strategy of localizing green fuel.
According to him, work is also underway to tap the economic potential of the Suez Canal to localize industries complementary to the green fuel industry, such as wind turbines, solar panels, and electrolyzers.
“All of these efforts were carried out in parallel with cooperation with international entities to support financing, production, and developing pricing plans for the green fuel industry,” Gamal el-Din said.
“The Egypt-EU Investment Conference 2024, marked a vital milestone on Egypt’s pathway to become a global green ammonia hub, as we celebrated the signing of a flagship offtake agreement between Fertiglobe and Egypt Green Hydrogen, the first green hydrogen plant in Africa, located at the SCZONE. As first agreement under H2Global auction, the offtake not only demonstrates the EU support to the emerging green hydrogen industry and the realization of Egypt’s potential, but additionally emphasizes Egypt’s determination to reach its vision, and showcase its comparative advantage stemming from its abundant renewables resources, industrial land, and its unique geographic location with ease of access to the world. The agreement is a testimony of Egypt’s leadership and support in mobilizing its resources to attract foreign direct investments in green projects through the facilitation provided by its stakeholders.”
