Scatec ASA has once again pushed back the final investment decision (FID) for its long-anticipated Egypt Green Hydrogen project, a 100MW electrolyser initiative originally expected to be operational by late 2022.
Now rescheduled for the second half of 2025, the delay reflects persistent market, regulatory, and cost-related uncertainties—raising concerns about project bankability and long-term hydrogen offtake viability in emerging markets.
The project, which also includes 290MW of upstream wind and solar capacity, is one of Scatec’s flagship green hydrogen ventures, part of a broader strategy targeting large-scale renewable hydrogen exports from Egypt to Europe and other international markets. Yet despite a 2022 memorandum of understanding and initial infrastructure development, only a 15MW pilot installation has materialized to date.
A recent Q1 2025 earnings presentation slide revealed construction for the full project is not expected to begin until at least 2026, with commissioning stretching into 2027 or beyond. The delay marks a notable retreat from the 2023 announcement that an FID could be taken in early 2025, casting doubt on Egypt’s near-term potential to become a major green hydrogen exporter.
According to Scatec’s 2025 Base Prospectus, the delay is not isolated. It comes amid broader strategic and financial pressure on the company’s green hydrogen initiatives. While Scatec continues to list the Egypt Green Hydrogen plant as a priority within its 1.1GW Egyptian solar-plus-storage portfolio, the project remains contingent on final permitting, land acquisition, and most critically, long-term offtake agreements to justify the estimated capital investment.
Scatec notes in its prospectus that the lack of mature offtake frameworks for green hydrogen—particularly in emerging markets—represents a core barrier to project viability. In Egypt, where fossil-derived ammonia and hydrogen remain dominant in fertilizer production and industrial sectors, cost parity remains a challenge. Furthermore, the financing environment has tightened significantly amid rising interest rates and inflation-linked cost overruns in similar projects globally.
The company has previously emphasised Egypt’s strategic advantage, including high solar irradiance, access to ports on both the Mediterranean and Red Sea, and a political framework supportive of renewables. Still, the delays suggest that bankable hydrogen projects require more than infrastructure readiness—they demand visible, enforceable demand signals.
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