The agreement in place will see the General Authority for Suez Canal Economic Zone (SCZONE), The Sovereign Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA), jointly explore the establishment of the ammonia facility.

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Scatec has said that the green ammonia production facility will be capable of producing one million tonnes annually from hydrogen and thus could establish an extensive supply and demand chain for the clean energy carrier in Egypt.

With further demand, it could create investment incentives that could significantly scale the country’s hydrogen sector.

The green hydrogen and ammonia facility will be located in the SCZONE in Ain Sokhna Industrial Zone and will be powered by renewable energy plants to be built in close proximity on an area of land allocated by NREA.

Raymond Carlsen, CEO of Scatec, said, “We are proud to partner once more with the Government of Egypt represented by SCZONE and TSFE, as well as with our long-term partners EETC and NREA, for the realisation of this exciting large-scale green ammonia project in Egypt.

“We believe that no effort should be spared to accelerate the energy transition, and we are thrilled to be contributing to Egypt’s aspiration to become a hub for green fuel.”

Yehia Zaki, Chairman of the General Authority for Suez Canal Economic Zone, said, “The SCZONE welcomes the opportunity of partnering with the distinguished public and private entities joining forces for the development of this mega project, and we look forward to witnessing its execution over the coming months as a first step towards the adoption of the green ammonia technology and creation of a green fuels’ industrial hub in the SCZONE.

“We are ready to provide all the support needed to expedite the project’s implementation.”