Yara Clean Ammonia Signs Agreement for Green Hydrogen Ammonia in Egypt
Yara Clean Ammonia has secured a head of terms agreement for the offtake of renewable ammonia produced in Egypt from green hydrogen.
Under the deal, Yara will receive renewable ammonia from Misr Fertilizers Production Company’s (MOPCO) plant in Damietta, which will source hydrogen from a new electrolyzer facility. This facility is part of a larger project involving Scatec, Egyptian Petrochemicals Holding Company (ECHEM), and MOPCO, aiming to develop 240MW of electrolysis powered by 480MW of renewables.
The project, expected to produce up to 150,000 tonnes of ammonia annually, has received a Letter of Intent (LoI) from the European Investment Bank (EIB) for long-term financing.
Hans Olav Raen, CEO of Yara Clean Ammonia, stated that the Egyptian project will bolster Yara’s renewable ammonia supply. “Once this project reaches a final investment decision (FID), it will help us reliably serve our customers across several market sectors,” he said.
Last month, Yara inaugurated its 24MW renewable ammonia plant in Norway, attended by the country’s Prime Minister.
Egypt’s Petroleum and Mineral Resources Minister, Tarek El Molla, praised the agreement, highlighting its role in securing hydrogen investments and mitigating project risks. This comes as Egypt’s Abu Qir Fertilizers announced plans to replace natural gas with hydrogen amid recent gas shortages partially.
Recent gas shortages in Egypt, exacerbated by prolonged heatwaves and disruptions from the war in Gaza, have driven the country to explore alternative energy sources.
DEME Partners with Egypt for Green Hydrogen Facility
Belgium-based offshore energy contractor DEME has signed a cooperation agreement with the Egyptian government to establish an industrial-scale green hydrogen production facility at the Port of Gargoub in Egypt’s western desert.
The deal was signed during the EU-Egypt Investment Conference on June 29-30.
DEME plans to use insights from its HYPORT Duqm green hydrogen project in Oman for this new venture, known as HYPORT Gargoub. The project will be developed in three phases, with the first aiming to produce 320,000 tonnes of green ammonia annually.
The production facility will be situated in the industrial zone of Gargoub Port. At the same time, the wind and solar power generation infrastructure will be located 70 kilometers southwest of Gargoub and connected via a dedicated high-voltage power line.
HYPORT Gargoub is DEME HYPORT Energy’s second major project, following the HYPORT Duqm in Oman. DEME HYPORT Energy aims to produce and transmit all necessary electricity and water to generate 100% green hydrogen.
Luc Vandenbulcke, CEO of DEME, expressed gratitude to Egypt’s President Abdel Fattah El-Sisi, Prime Minister Mostafa Madbouly, and Minister of Transport Kamel al-Wazir for their support.
“DEME HYPORT Energy is a cornerstone of our sustainability strategy. We are committed to establishing ourselves as a global player in the green hydrogen space,” Vandenbulcke said.
DEME is also part of the consortium behind the PosHYdon project, which integrates offshore wind, gas, and hydrogen production in the Dutch North Sea. DEME Offshore is providing the hydrogen unit for the Q13a platform and is involved in the design of a 100 MW offshore hydrogen plant.
Through these projects, DEME continues to advance its position in the green hydrogen sector.
