Norwegian fertiliser giant Yara to buy Scatec’s green ammonia in Egypt

Egypt could play a leading role in the decarbonisation of nitrogen fertilisers worldwide. After attracting the attention of some of the world’s leading groups in the field of green hydrogen, the land of the pharaohs is now home to Yara Clean Ammonia. The subsidiary of Norwegian fertiliser giant Yara International has just signed an agreement with energy company Scatec, which is developing a carbon-free ammonia project with its local partners Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO).

Yara will purchase the ammonia produced at the port of Damietta in the Nile Delta, around 200 kilometres north-east of Cairo. Scatec, ECHEM and MOPCO have just launched the special purpose company Damietta Green Ammonia Company (DGA) to develop their project. The project involves the development of 480 MW of renewable electricity generation capacity.

Financial support from the EIB

A 240 MW electrolyser will also be built to convert the electricity into green hydrogen, the raw material for carbon-free ammonia. DGA expects to be able to produce 150,000 tonnes of green ammonia a year. The purchase agreement signed with Yara “is another step in our efforts to work with our private sector partners to support the implementation of Egypt’s national low-carbon hydrogen strategy through specific projects”, said the Egyptian Minister of Petroleum and Mineral Resources.

According to Tarek El Molla, “this collaboration and these partnerships will help to secure investment in renewable hydrogen, reduce the risks associated with project implementation and facilitate the realisation of Egypt’s vision of becoming a regional and global centre for green hydrogen”. Egypt is making progress towards this goal by forging partnerships with other global energy giants such as Saudi Arabia’s Acwa Power, France’s Voltalia and TotalEnergies, and the UK’s Globeleq.

Norway’s Scatec, for its part, has already secured the support of the European Investment Bank (EIB), with which it has already signed a letter of intent for the long-term financing of its Damietta hydrogen and ammonia project. EIB Vice-President Gelsomina Vigliotti believes that “accelerating the production of renewable hydrogen in Egypt can boost the competitiveness of companies and open up opportunities for the export of renewable hydrogen”.