Scatec partners with Fertiglobe on 100-MW Egypt green hydrogen plant for ammonia

Norwegian renewable energy company Scatec is partnering with urea and ammonia company Fertiglobe and the Sovereign Wealth Fund of Egypt to jointly develop a 50-100-MW renewable hydrogen production facility to supply feedstock for ammonia, the companies said Oct. 14.

Scatec will build, operate and majority own the facility, while Fertiglobe subsidiary EBIC will have a long-term offtake agreement for the ammonia, the companies said in a statement.

The plant will be built near EBIC's ammonia plant in Ain Sokhna, Egypt.

Related: Platts launches global ammonia assessments

"New business models and innovation have been at the core of Scatec since our inception, and we see green hydrogen as a natural part of our strategy and the renewable ecosystem in the years to come," CEO Raymond Carlsen said.

The project partners are targeting first hydrogen production by 2024, with an investment decision expected in 2022.

The companies said the project would form the first step towards a renewable hydrogen hub in Egypt.

"Fertiglobe is increasingly becoming an ideal springboard to capture the huge growth opportunities offered by the hydrogen economy," CEO of OCI, a co-owner of Fertiglobe, Ahmed el-Hoshy said.

Fertiglobe has 6.6 million mt/year of urea and ammonia production capacity, from subsidiaries in the UAE, Egypt and Algeria.

"The participation of the Sovereign Fund of Egypt underlines Egypt's commitment to become a global leader in the renewables space," el-Hoshy added.

The parties will seek support from the Egyptian government for the required regulatory approvals, the statement said.

The project partners plan to source renewable power from the grid, and intend to develop new solar and wind capacity to power further renewable hydrogen production.

S&P Global Platts launched ammonia price assessments Oct. 12.

Platts assessed the FOB Middle East price at $535/mt Oct. 14, up $10 from Oct. 13, as demand increased from Asia Pacific, particularly China.

China's domestic price levels were heard to be increasing, lending strength to imports.