Mazghouny & Co is very pleased to have advised Scatec ASA on the drafting and negotiation of its memorandum of understanding (MOU) signed today with the General Authority for Suez Canal Economic Zone (SCZONE), The Sovereign Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA), to jointly develop a green ammonia facility in Egypt with a production capacity of 1 million tonnes annually with a potential for expansion up to 3 million tonnes annually.
The facility will be located in Ain Sokhna Industrial Zone in the SCZONE and will be powered by renewable energy plants to be built on land allocated by NREA. Long term offtake agreements will be secured to enable non-recourse project financing for the facility, which production will mainly be exported to European and Asian markets.
This is the first large-scale project for green ammonia production in Egypt, which also includes the participation of the Government of Egypt, and the second involving green hydrogen production for Scatec in the country. It is an excellent demonstration of Egypt’s pledge to maximise low carbon and green energy production ahead of COP27 meetings to be held in Sharm Elsheikh later this year.
Mazghouny & Co team has a strong record of advising on some of the most innovative and ground-breaking transactions in the green energy sector in Egypt.