Scatec inks Ain Sokhna green hydrogen pact with SFE and OC
Welcome to our much greener future: The Sovereign Fund of Egypt (SFE), Norway’s Scatec, Nassef Sawiris-backed ammonia producer Fertiglobe and Orascom Construction signed an agreement on Thursday to establish and operate their planned 100 MW green hydrogen plant in Ain Sokhna, according to a cabinet statement.
Who’s doing what: The facility will be built and operated by the consortium, with a long-term off-take agreement with EBIC, one of Fertiglobe’s subsidiaries in Egypt. The project is set to come online by 2024, making it Egypt’s first operational green hydrogen plant.
Also signed on Thursday: A second agreement on the purchase of hydrogen from the project with Fertiglobe subsidiary the Egyptian Fertilizer Company, according to the statement.
Background: The consortium had announced its plan to establish the plant back in October, saying it would be used as feedstock for green ammonia production. The announcement came as Egypt works on a strategy to channel bns of USD of investment to create a local industry amid a rising global interest in green hydrogen. Cairo’s plans have attracted major global players seeking investments in the sector in the country. Head to our explainer here for everything you need to know about green hydrogen and what Egypt plans to do with it.
Another company interested in Egypt’s nascent hydrogen industry? Eni, whose CEO Claudio Descalzi was in Cairo last week for talks with President Abdel Fattah El Sisi. The two discussed cooperation on green hydrogen and Egypt’s LNG exports, an Ittihadiya statement said Thursday. The Italian energy giant has reportedly submitted a bid to set up a hydrogen production facility in Egypt.