Thu, 14 Oct 2021 - 02:18 GMT
FILE - CEO of Egypt's Sovereign Fund Ayman Soliman
CAIRO – 14 October 2021: Egypt’s green hydrogen agreement contributes to providing a unique investment product that achieves financial returns and supports the development of the green economy in general, according to Ayman Soliman, CEO of the Sovereign Fund of Egypt.
"This project represents the fund's starting point towards building its green investment portfolio, and the beginning of many similar future investments,” Soliman added.
Egypt signed Thursday an agreement to produce green hydrogen in quantities ranging from 50-100 megawatts, as a feedstock for the production of green ammonia.
The agreement was signed between Egypt’s Sovereign Fund, the Norwegian company “Scatec” for renewable energy, and the Fertiglobe company owned by the Dutch “Orascom” and the UAE “ADNOC”.
Under the agreement, the Norwegian company Scatec will build and operate a green hydrogen production facility with quantities ranging from 50 to 100 megawatts.
The production will be supplied to Egypt Basic Industries Corporation (EBIC), which is owned by Fertiglobe, which will use green hydrogen as a supplemental feedstock to produce more than 45 metric tons of green ammonia per year under a long-term purchase contract.
According to the agreement, the ownership structure of the project is divided between the Norwegian company “Scatec”, which will own a majority stake in it, the Sovereign Fund of Egypt, and the “Fertiglobe” company owned by Sawiris.
The project will be located near the facilities of Egypt Basic Industries Corporation “EBIC” in the industrial zone located in Ain Sukhna.
“The green hydrogen project will be accomplished drawing on our long experience in project development and financing, and building renewable energy projects in emerging markets,” said Raymond Carlsen, CEO of Scatec.
Orascom Holland, owned by Nassef Sawiris, is trying to increase its “low-carbon” investments, and is also working to deploy a new technology worldwide to intensify its green ammonia production portfolio, according to the company's CEO, Ahmed El Hoshi.
The agreement, which was witnessed by the Egyptian Prime Minister, Mostafa Madbouly, was signed by Ayman Soliman, CEO of the Sovereign Fund of Egypt, Raymond Carlsen, CEO of the Norwegian renewable energy company Scatec, and Nassef Sawiris, CEO of Fertiglobe.
Headquartered in Abu Dhabi, Fertiglobe was established in 2019 after OCI and ADNOC merged the ammonia and urea assets, with the two companies currently holding 58 percent and 42 percent ownership stakes, respectively, in the company.