Egypt recently signed two significant contracts for the purchase of green ammonia at the Egyptian-European Investment Conference. One of these contracts marked the first binding agreement with Fertiglobe for green ammonia worldwide, while the second was signed with the Norwegian company Yara Clean Ammonia for a 20-year agreement to purchase green ammonia from the Damietta Ammonia Project.
The Egyptian Cabinet announced these agreements during the conference, which facilitated their signing. Prime Minister Dr. Mostafa Madbouly met with key stakeholders involved in the agreements, including CEOs of Scatec and Yara Clean Ammonia, as well as other officials and ambassadors.
Led by Scatec, the Egypt Green Hydrogen Alliance successfully signed these contracts and will be developing, building, and operating a green hydrogen production station in the Suez Canal Economic Zone. The project aims to produce 13,000 tons of green hydrogen annually, which will be converted into about 70,000 tons of ammonia using renewable energy sources.
The total investment for this project is estimated at $500 million and includes the construction of solar and wind energy production stations with a capacity of 270 megawatts. The long-term agreement secured by the project with Fertiglobe to purchase green ammonia for 20 years further solidifies its future success and contribution to the energy sector in Egypt.
Minister of Petroleum and Mineral Resources, Eng. Tarek El Molla, highlighted the confidence in this project and the investment climate in Egypt. The initial investment cost is projected at around $900 million, with a production capacity of up to 150,000 tons of green ammonia per year. This project also includes plans for the construction of a seawater desalination plant and a marine pier at Damietta Port for exporting green ammonia.
