Yara Clean Ammonia, Scatec, ECHEM and MOPCO sign Heads of Terms for renewable ammonia offtake agreement in Egypt
Scatec ASA 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, according to Yara's release.
Last year, Scatec, the Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO) 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 electrolyzer 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.
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.
Scatec is a renewable energy solutions provider, accelerating access to reliable and affordable clean energy emerging markets. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’.
The 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.
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.
