Power Grid

Egypt has achieved a significant global milestone in the energy sector by signing a groundbreaking deal, surpassing a similar agreement made by the Sultanate of Oman in March 2024. According to a statement from the Washington-based Specialized Energy Platform, Cairo secured its first binding contract for the purchase of green ammonia on June 29, 2024. This long-term deal was signed with Norwegian companies Scatec and Yara Clean Ammonia.

The contract was signed between the two Norwegian companies and the General Authority of the Suez Canal Economic Zone, witnessed by Egypt's Minister of Petroleum and Mineral Resources, Eng. Tarek El Molla, and the Norwegian Ambassador to Cairo, Hilda Klimitsdal. The Sultanate of Oman had previously signed a similar agreement with Norwegian company Yara and Indian developer Acme to purchase 100,000 tons of green ammonia annually. However, the Cairo deal surpasses Oman's in both quantity and duration.

Prime Minister Dr. Mostafa Madbouly congratulated Scatec for its success in signing two significant contracts for the purchase of green ammonia from Egypt. One of these contracts, a binding agreement with Vertiglobe, marks a global first. Norwegian CEO of Scatec, Terje Bilskoj, highlighted that the "Egypt Green Hydrogen" consortium, which includes Fertiglobe, Orascom Construction, and Egypt's Sovereign Fund, has been working since 2021 to develop a 100 MW green hydrogen production plant in the Suez Canal Economic Zone. This hydrogen is then converted into green ammonia at Misr Fertilizers' plant for export.

The project currently produces about 13,000 tons of green hydrogen annually, converting it into 70,000 tons of green ammonia. With a total investment of $500 million, the project utilizes two solar and wind power plants with a capacity of 270 megawatts. Additionally, Scatec signed a contract with Yara Clean Ammonia to purchase green ammonia from the "Damietta Green Ammonia" project, which will be developed with $900 million in investments. Egyptian Minister of Petroleum Tarek El Molla noted that the project aims to generate renewable energy with a total capacity of 480 megawatts and produce 150,000 tons of green ammonia annually.