- Scatec and Yara Clean Ammonia will produce and purchase green ammonia from a new decarbonised project at Egypt’s Damietta port.
- The project includes 480 MW of renewable electricity generation and a 240 MW electrolyser, aiming to produce 150,000 tonnes of green ammonia annually.
- Backed by the European Investment Bank, the project will bolster Egypt’s ambition to become a green hydrogen hub.
Norwegian energy company Scatec has struck a deal with Yara Clean Ammonia, a subsidiary of Yara International, to purchase green ammonia from its decarbonised project in Damietta, Egypt.
The agreement marks Egypt’s growing role in decarbonising nitrogen fertilisers. With global interest in green hydrogen, Egypt has attracted significant players, including Yara Clean Ammonia. Yara has partnered with Scatec and local entities such as the Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO) to advance this project.
Located 200 km northeast of Cairo, the project will be developed by Damietta Green Ammonia Company (DGA), a special-purpose entity created by the partners. DGA plans to generate 480 MW of renewable electricity and build a 240 MW electrolyser. This will convert electricity into green hydrogen, the feedstock for producing green ammonia. The project aims to produce 150,000 tonnes of green ammonia annually.
The European Investment Bank (EIB) supports the project and has signed a letter of intent for long-term financing. EIB Vice-President Gelsomina Vigliotti said, “Boosting renewable hydrogen production in Egypt will enhance company competitiveness and open export opportunities.”
Egyptian Petroleum Minister Tarek El Molla emphasised the importance of the partnership, stating, “This collaboration will secure renewable hydrogen investments, reduce project risks, and help Egypt become a regional and global green hydrogen hub.”
Egypt also partners with other international energy leaders, including Saudi Arabia’s Acwa Power, France’s Voltalia and TotalEnergies, and the UK’s Globeleq. These partnerships are part of Egypt’s strategy to advance its green hydrogen and ammonia ambitions.
The green ammonia project in Damietta will be crucial for Egypt’s low-carbon hydrogen strategy. The project aims to reduce reliance on fossil fuels and contribute to global decarbonisation efforts by developing a robust renewable energy infrastructure.
Scatec’s collaboration with Yara aligns with its broader goals of promoting sustainable energy solutions. This project is expected to strengthen Scatec’s presence in the green hydrogen market and support Yara’s commitment to reducing carbon emissions in fertiliser production.
With substantial financial backing and strategic partnerships, the Damietta project positions Egypt at the forefront of the green ammonia and hydrogen industries. The collaboration underscores the country’s potential to become a significant player in the global transition to cleaner energy.