Norway-based renewable energy company Scatec and its partners, Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilisers Production Company (MOPCO) have signed Heads of Terms for renewable ammonia offtake from Egypt with Yara Clean Ammonia, the world’s largest trader and distributor of ammonia, according to a press statement from Scatec.

Last year, Scatec, ECHEM and MOPCO had entered into a joint development agreement (JDA) and a shareholder agreement for the production of renewable ammonia.

The press statement that Scatec and its partners will develop and build up to 480 megawatts (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, the statement noted.

The three partners have established joint venture Damietta Green Ammonia Company (DGA) to develop the project, 

Scatec also signed a letter of Intent with the European Investment Bank (EIB) for long-term financing for the green ammonia project.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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