Fertiglobe has won the first H2Global pilot auction for renewable ammonia, promising to deliver 397,000 tons of renewable ammonia between 2027 and 2033. H2Global’s announcement comes at the end of a two year auction process. Following the H2Global announcement, Fertiglobe committed to a twenty-year offtake deal for renewable hydrogen feedstock from the Egypt Green Hydrogen project, demonstrating the investor certainty fostered by the auction.
More than $37 billion will be invested across the initial stages of hydrogen and ammonia production projects, ranging in location from the Gulf of Suez to west of the Nile Delta. A series of agreements concerning existing and newly-announced projects were signed at the recent Egypt-EU Investment Conference.
For our December episode of Ammonia Project Features, we welcomed Alzbeta Klein (International Fertilizer Association) and Tarek Hosny (Fertiglobe). Our speakers discussed a pathway forward for Egypt’s fertilizer industry to decarbonize, presented the newly-commissioned Egypt Green Hydrogen project, and outlined the unique advantages (and challenges) of developing renewable production projects in Egypt.
This week we explore three ammonia production announcements from Egypt at COP27. The “Egypt Green” integrated hydrogen plant has been commissioned in Ain Sokhna, and will shortly begin supplying renewable hydrogen to two nearby ammonia plants. AMEA Power has agreed to develop an 800,000 tonnes per year ammonia production project (also in Ain Sokhna), and Fortescue Future Industries will explore the feasibility of multiple renewable projects across the country.
Yara Clean Ammonia has committed to complete off-take from the first phase of ACME and Scatec’s new renewable ammonia production plant in Oman. Yara will off-take 100,000 tonnes per year, with a potential for more as the plant expands towards full capacity. The announcement joins a series promising off-take agreements signed within the last twelve months.
TÜV Rheinland has issued a world-first “Green Hydrogen and Green Ammonia Certificate” to Scatec & ACME’s solar ammonia mega-project in Oman. The greenfield project has met all criteria for TÜV’s H2.21 Carbon-Neutral Hydrogen standard. The certification will allow Scatec & ACME better access to key international markets. In related news, Dutch hydrogen trading platform HyXchange has delivered its very first green hydrogen certificate as work continues to implement its Guarantee of Origin scheme.
Scatec will partner with a series of Egyptian government entities to develop a green ammonia plant in Ain Sokhna, adjacent to the Suez Canal. The project partners have already indicated that the one million per year facility could be expanded in the future to a production capacity of three million tonnes of green ammonia. Growing green ammonia markets in European & Asia are being targeted as export destinations.
Scatec will enter into a 50:50 joint venture with ACME to design, develop, build, own and operate a planned large-scale, green ammonia facility in the Duqm Special Economic Zone of Oman. At full capacity the facility will produce 1.2 million tonnes of green ammonia per year, and the partners aspire to be “one of the first” commercial green ammonia facilities operating in the world. Advanced discussions for long-term off-take are already in progress. The project was launched last March by ACME and Oman government authority Tatweer, and added KBR as technology partner last October.