Cairo - Mubasher: Egypt has signed a memorandum of understanding (MoU) with Scatec, a Norway-based renewable power producer, to establish the country's first large-scale green ammonia facility in the Suez Canal Economic Zone (SCZONE).
The MoU was inked by the General Authority for SCZONE, the Sovereign Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA), according to a press release on Thursday.
Expected to commence its production in 2025, the $5 billion project will be implemented in two phases and will be powered by renewable energy plants.
The facility has a production capacity of 1 million tonnes annually, with a potential for an increase to three million tonnes annually.
The project coincides with Egypt's host of the United Nations Climate Change Conference (COP27) in Sharm Elsheikh later this year.
The CEO of Scatec, Raymond Carlsen, said: "We believe that no effort should be spared to accelerate the energy transition, and we are thrilled to be contributing to Egypt’s aspiration to become a hub for green fuel."
Meanwhile, the Chairman of the General Authority for SCZONE, Yehia Zaki, commented: "We look forward to witnessing its execution over the coming months as a first step towards the adoption of the green ammonia technology and creation of a green fuels’ industrial hub in the SCZONE."
