Cairo – Mubasher: Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (Mopco) have signed an agreement with Norway’s Scatec and Yara International for production of green ammonia in Damietta.
With an investment cost of around $890 million, the project is planned to have a production capacity of 150,000 tonnes annually, according to a cabinet statement.
The project aims to produce wind and solar energies with a total capacity of 480 megawatts (MW).
Mohamed Shaker, Minister of Electricity and Renewable Energy, stated that the project is part of the Egyptian energy sector strategy to enhance the state's capabilities in using new and renewable energy sources and to reduce carbon emissions by decreasing reliance on conventional energy sources.
Shaker added that the project aims to deepen local production of green ammonia and aligns with state efforts to transform Egypt into a centre for green hydrogen.
For his part, Minister of Petroleum and Mineral Resources Tarek El-Molla said that the project aims to produce green ammonia using the production capacities available at Mopco.
He noted that the main terms and conditions of the contract ensure success in securing a buyer for the green ammonia produced by the project, which is the Norwegian company Yara.
The Minister of Petroleum added that the project scope also includes establishing a seawater desalination plant and a sea pier to export green ammonia from the port of Damietta, with operations expected to start in 2027.
It is worth noting that Mopco's net profit surged to EGP 7.64 billion in the first quarter (Q1) of 2024 from EGP 3.92 billion in Q1-23.
