Oslo, 14 October, 2021: Scatec has entered into an agreement with Fertiglobe plc, a leading ammonia producer jointly owned by OCI N.V. and Abu Dhabi National Oil Company (ADNOC), and The Sovereign Fund of Egypt (TSFE), to jointly develop a 50-100MW green hydrogen facility as feedstock for green ammonia production.
Scatec will build, operate and majority own the facility and a long-term off-take agreement will be entered into with Fertiglobe's subsidiary EBIC. The facility will be located near EBIC in Ain Sokhna and is the first step towards developing a green hydrogen hub in Egypt.
"We are proud to establish a strong partnership with Fertiglobe and the Sovereign Fund of Egypt to move the green agenda forward in Egypt. The development of this green hydrogen project builds on our long experience in project development, financing, and delivery of renewable energy projects in emerging markets. New business models and innovation have been at the core of Scatec since our inception, and we see green hydrogen as a natural part of our strategy and the renewable ecosystem in the years to come," says CEO Raymond Carlsen.
This new partnership forms part of Scatec's strategic initiative, "Power to X", with the objective of enabling and realising industrial projects that contribute to reducing the carbon emissions through the provision of competitive renewable energy. The ambition is to develop long term partnerships where Scatec can capitalise on its expertise in renewable project development in high growth markets globally. Renewable technology, long term off-take contracts, equity co-investments and project financing from multilateral finance institutions represent key elements of this strategy.
Ahmed El-Hoshy, CEO of OCI N.V., commented: "We are pleased to partner with Scatec, a leader in the global renewables market and Egypt's largest renewable power developer. Together we will deploy world-leading technology to ramp up our green ammonia production profile and further expand our low-carbon portfolio. Fertiglobe is increasingly becoming an ideal springboard to capture the huge growth opportunities offered by the hydrogen economy. The participation of the Sovereign Fund of Egypt underlines Egypt's commitment to become a global leader in the renewables space."
Ayman Soliman, CEO of TSFE, commented: "We are pleased to be partnering up with Scatec and Fertiglobe who are pioneers in green hydrogen production, to provide a unique investment product that creates financial returns while nurturing the green economy at large. The Sovereign Fund of Egypt is a manifestation of Egypt's 2030 Vision with the principles of sustainable development and impact investment instilled in its mandate, and this project is a cornerstone investment in our green sustainable portfolio build-up with many more to come."
The parties will seek support from the Egyptian government for required regulatory approvals and sourcing of competitive renewable power from the grid, with the intention to build out new solar and wind capacity to power Egypt's green hydrogen ambitions in the years to come. The project will be realised in close cooperation with leading hydrogen technology providers and multilateral development institutions for financing. Required engineering and development, including structuring of commercial agreements for the new facility, will start imminently with a target investment decision in 2022 and start-up of the hydrogen facility by 2024.
For further information, please contact:
Andreas Austrell, VP IR
Tel: +47 974 38 686, andreas.austrell@scatec.com
Mikkel Tørud, CFO
Tel: +47 976 99 144, ir@scatec.com
About Scatec ASA
Scatec is a leading renewable power producer, delivering affordable and clean energy worldwide. As a long- term player, Scatec develops, builds, owns and operates solar, wind and hydro power plants and storage solutions. Scatec has more than 3.5 GW in operation and under construction on four continents and more than 500 employees. The company is targeting 15 GW capacity in operation or under construction by the end of 2025. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol 'SCATC'. To learn more, visit www.scatec.com, or connect with us on Linkedin.
About OCI N.V.
OCI N.V.
About Fertiglobe
Fertiglobe is the world's largest seaborne exporter of urea and ammonia combined, and an early mover in clean ammonia. Fertiglobe's production capacity comprises of 6.6 million tons of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer in the Middle East and North Africa
About the Sovereign Fund of Egypt
The Sovereign Fund of Egypt (TSFE) was established in 2018 to attract private investment to Egypt and promote and co-invest in state-owned assets to maximise their value and support the Egyptian economy. Independently managed by senior finance executives, TSFE selects investable assets from public stakeholders and co-invests in them with local and foreign partners. The fund's mission is to increase the private sector's role in the economy and create more jobs for Egypt's young population.
The fund operates under a special law which allows it to establish investment partnerships that offer unique opportunities for investors, to aid the government's efforts to carry out structural reforms in various sectors and diversify Egypt's growing economy.
The fund adheres to best international practices in all areas, operating with transparent and flexible investment rules, which enable diverse co-investment structures and good governance in management. The fund is supervised by a board of directors and a general assembly with the majority of members coming from the private sector.
TSFE was established by Law 177 in 2018. Its charter was issued by the Prime Minister's Decision no. 555 in 2019. The fund is a member of the International Forum for Sovereign Wealth Funds.
To find out more, please visit: www.tsfe.com
