Mazghouny & Co has assisted leading renewable energy solutions provider, Scatec, and its partners, the Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO), with the Heads of Terms for renewable ammonia offtake from Egypt signed with Yara Clean Ammonia, the world’s largest trader and distributor of ammonia, after the “Damietta Green Ammonia” sponsors had entered last year into a joint development agreement and a shareholder agreement for the production of renewable ammonia.

The project sponsors will develop and build up to 480 MW of renewable energy and an up to 240 MW electrolyser facility for the production of renewable hydrogen, which will be used as feedstock for production of renewable ammonia at MOPCO’s existing ammonia production facility in Damietta, Egypt. The targeted production capacity is up to 150,000 tonnes of renewable ammonia per year.

The project has attracted interest from long-term financiers aiming to support renewable hydrogen and ammonia projects in Egypt through accelerating production, strengthening business competitiveness, and unlocking opportunities to export renewable hydrogen, particularly to the European Union.

Our team has assisted the sponsors with the review of the Heads of Terms and participated alongside the project development team in its negotiation, after having handled the virtual incorporation of the project company in August 2023, as the first company to be incorporated online with the General Authority for Investment and Free Zones in Egypt, as well as the drafting and negotiation of the joint development agreement and shareholders’ agreement.