Norwegian renewable energy producer Scatec has on Thursday signed a memorandum of understanding to develop a green hydrogen facility as feedstock for green ammonia production in Egypt. Scatec has signed the agreement with the General Authority for Suez Canal Economic Zone (SCZone), the Sovereign Fund of Egypt (TSFE), Egyptian Electricity Transmission (EETC), and New and Renewable Energy Authority (NREA). The agreement was signed by Yehia Zaki, chairman of SCZONE; Ayman Soliman, chief executive of TSFE; Sabah Mashali, chairperson of EETC; Mohammed El Khayat, chairman of NREA, and Raymond Carlsen, Scatec's chief executive. In a ceremony held in Cairo, Egyptian Prime Minister Moustafa Madbouly, Planning Minister Hala al-Saeed, and Hilde Klemetsdal. Norway's Ambassador to Egypt, have witnessed the signing. Coinciding with Egypt's hosting of COP27 United Nations Climate Change Conference later this year, the facility will cost up to $5 billion and will be built in two phases, according to Egyptian Cabinet spokesperson Nader Saad. According to the agreement, Scatec is set to build build, and operate the facility at a capacity of one million tonnes/year, with plans to boost it to be 3 million tonnes/year, Saad added. The facility will be located in the Suez Canal Economic Zone near the Egyptian canal city of Ain Al Sokhna, and is expected to start production in 2025, the Cabinet spokesperson further said. Green hydrogen is a zero-carbon fuel made by electrolysis through the usage of renewable power from wind and solar to split water into hydrogen and oxygen without burning fossils. Egypt has been studying using green hydrogen as a cleaner energy source to integrate into its energy mix by 2035.
