Yara Clean Ammonia, Scatec, ECHEM and MOPCO signs Heads of Terms
for renewable ammonia offtake agreement in Egypt
Oslo and Cairo, 1 July 2024: Scatec ASA, a leading renewable
energy solutions provider, and its partners, ECHEM and MOPCO, have
agreed on Heads of Terms for renewable ammonia offtake from Egypt
with Yara Clean Ammonia, the world’s largest trader- and
distributor of ammonia.
Last year, Scatec, the Egyptian Petrochemicals Holding Company
(ECHEM) and Misr Fertilizers Production Company (MOPCO) (the
“Sponsors”) entered into a joint development agreement and a
shareholder agreement for the production of renewable ammonia.
The Sponsors will develop and build up to 480 MW of renewable
energy and an up to 240 MW electrolyser facility for production of
renewable hydrogen, which will be used as feedstock for production
of renewable ammonia at MOPCO’s existing ammonia production
facility at Damietta in Egypt. The targeted production capacity is
up to 150,000 tonnes of renewable ammonia per annum.
Scatec also signed a letter of Intent with the European
Investment Bank (“EIB”) for long-term financing for the project,
showcasing EIB’s commitment to support renewable hydrogen and
renewable ammonia projects in Egypt.
“We are very pleased to be signing this Heads of Terms with
global industry leader Yara Clean Ammonia. This is a testament to
Scatec's position in Egypt and our strategy to focus on developing
renewable hydrogen projects related to existing ammonia production
capacity. Scatec will bring their expertise and experience gained
from other projects. We are looking forward to our future
collaboration,” says Scatec CEO Terje Pilskog.
“Yara Clean Ammonia has a diversified portfolio of asset backed
and offtake agreements for low-emission ammonia. This project will
further strengthen our sourcing portfolio of renewable ammonia and
is a testimony to Yara Clean Ammonia as the most preferred
off-taker as the world’s largest trader and distributor of ammonia.
Once the project has reached a final investment decision, the
renewable ammonia from this project will help us reliably serve our
customers across several market sectors,” says Yara Clean
Ammonia CEO Hans Olav Raen.
Today’s signature is a further step towards our
efforts in working with our partners from the private sector to
support translating Egypt’s national low carbon hydrogen strategy
into action through specific projects,” said Egyptian
Minister of Petroleum and Mineral Resources, H.E. Tarek El
Molla. “Such collaboration and partnerships will help
secure renewable hydrogen investments, de-risk implementation of
projects and facilitate realizing Egypt’s vision of becoming a
regional and global green hydrogen hub.”
"We are excited to embark on this significant
project in collaboration with Scatec and MOPCO. This agreement with
Yara Clean Ammonia not only underscores our commitment to
sustainable energy solutions but also marks a substantial step
forward in our mission to innovate within the petrochemical
industry. The development of renewable ammonia from this project
aligns with our strategic goals and will contribute to a greener
future for Egypt and beyond," says ECHEM President &
Chairman Eng. Ibrahim Mekki
“Misr Fertilizers Production Company “MOPCO”, one of the major
ammonia and urea producers in MENA, is working together with their
partners, ECHEM and Scatec ASA, to develop a major renewable
ammonia production facility in Egypt through Damietta Green Ammonia
Company, ”DGA”, that was recently established by the three parties.
The facility will produce approximately 150,000 metric tons of
renewable ammonia for export in the international market through
the well-known global off-taker, Yara Clean Ammonia. As one of DGA
shareholders, MOPCO, is pleased to announce the signature of the
Heads of Terms for this flagship ammonia offtake with Yara Clean
Ammonia,” says MOPCO Chairman and Managing Director Eng.
Ahmed Mahmoud El-Sayed
“Enabling industry to harness renewable energy is key for the
green transition. Accelerating renewable hydrogen production in
Egypt can strengthen business competitiveness and unlock
opportunities to export renewable hydrogen. The European Investment
Bank looks forward to working with Scatec and project partners to
unlock large scale renewable hydrogen investment across Egypt,”
says EIB Vice President Gelsomina Vigliotti.
For further information, please contact:
Yara Clean Ammonia:Media inquiries: Hilde
Steinfeld, hilde.steinfeld@yara.com, mobile: +47 99 35 30
30Investor relations in Yara Int.:
ir@yara.comScatec: Investor
relations: Andreas Austrell, andreas.austrell@scatec.com, mobile:
+47 974 38 686Media inquiries: Meera Bhatia,
meera.bhatia@scatec.com, mobile: +47 468 44 959
About Yara Clean Ammonia (YCA) Yara grows
knowledge to responsibly feed the world and protect the planet.
Yara Clean Ammonia is uniquely positioned to enable the hydrogen
economy in a market expected to grow substantially over the next
decades. We aim at significantly strengthening our leading global
position as the world’s largest ammonia distributor, unlocking the
green and blue value chains, and driving the development of clean
ammonia globally.
Building on Yara’s leading experience within global ammonia
production, logistics and trade, Yara Clean Ammonia works towards
capturing growth opportunities in low-emission fuel for shipping,
power generation, low-carbon food production and ammonia for
industrial applications.Yara Clean Ammonia operates the largest
global ammonia network with 15 ships and has, through Yara, access
to 18 ammonia terminals and multiple ammonia production and
consumption sites across the world. Revenues and EBITDA for the FY
2023 were USD 1,9 billion and USD 101 million respectively. Yara
Clean Ammonia is headquartered in Oslo,
Norway.www.yaracleanammonia.com
About ScatecScatec is a leading renewable
energy solutions provider, accelerating access to reliable and
affordable clean energy emerging markets. As a long-term player, we
develop, build, own, and operate renewable energy plants, with 4.6
GW in operation and under construction across four continents
today. We are committed to grow our renewable energy capacity,
delivered by our passionate employees and partners who are driven
by a common vision of ‘Improving our Future’. Scatec is
headquartered in Oslo, Norway and listed on the Oslo Stock Exchange
under the ticker symbol ‘SCATC’. To learn more,
visit www.scatec.com or connect with us
on LinkedIn.
About ECHEMThe Egyptian Petrochemicals Holding
Company (ECHEM) was established in January 2002 to manage and
develop the Petrochemicals industry in Egypt through new promising
areas of investment. ECHEM priority is to enhance the growth of
Petrochemical industry through implementing The National
Petrochemicals Master Plan with the target of realizing the optimum
utilization of natural gas in value added products. ECHEM is
entitled to develop a competitive petrochemicals industry based on
local human and natural resources, using state-of-the-art
technology and through implementing a pre-set flexible strategy.
ECHEM seeks a high standard of performance, etching a prominent
position in the competitive environment, and aims for efficient and
sustainable use of natural resources. To learn more, visit
www.echem-eg.com
About MOPCO Misr Fertilizers Production Company
"MOPCO" is considered as the largest producer of nitrogen
fertilizer products in Egypt and one of the major producers of
these products in MENA. It was established in 1998 on plot of
400,000 m2 inside Damietta Public Free Zone next to Damietta port
located in the middle of the world, with assets exceeding 50
billion Egyptian Pounds.
MOPCO specializes in the production of urea as a basic product
with 2 million tons production capacity per year and anhydrous
ammonia as an intermediate product with 1.2 million tons capacity
per year through their three plants using advanced EU technologies
that achieves the highest levels of product quality, safety, and
environmental protection. MOPCO is exporting approximately 50% of
its urea production and 40% of its anhydrous ammonia production to
the international markets especially EU, while 50% and 60% of its
production of urea and anhydrous ammonia respectively are sold in
the local market.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act.
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