Norwegian renewable energy company, Scatec ASA, has been awarded a $33 million (EUR 30 million) grant from the PtX Development Fund for its flagship Egypt Green Hydrogen project.
The grant, provided by a fund created by the German Federal Ministry for Economic Cooperation and Development and KfW, is the first award from this new fund supporting Power-to-X projects in developing and emerging economies.
The Egypt Green Hydrogen project is a collaborative effort between Scatec and key partners including Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company.
It seeks to develop green hydrogen for the production of renewable ammonia, targeting both domestic and international markets.
With an overall capital expenditure estimated at $548 million (EUR 500 million), the grant will partially finance the project, which is one of the region’s most ambitious renewable energy initiatives.
“We are pleased that our Egypt Green Hydrogen project has been recognised with this EUR 30 million grant from the German government and KfW Group through the PtX Development Fund,” said Scatec CEO Terje Pilskog.
“This achievement is a testament to the maturity of the project and reaffirms the broad support we have for this initiative.”
The PtX Development Fund, managed by KGAL, was created to promote Power-to-X technologies—processes that convert renewable electricity into carbon-neutral fuels—by mobilising investment and support for pioneering projects like Scatec’s.
In July, Scatec’s Egypt Green Hydrogen project secured a 20-year ammonia offtake agreement with Fertiglobe, following Fertiglobe’s win in the first-ever H2Global auction in Germany, which promotes global trade of green hydrogen and derivatives like ammonia.
The agreement, signed during the Egypt-EU Investment Conference in June 2024, was hailed as a key step toward advancing green hydrogen production in Egypt.
Fertiglobe’s CEO, Ahmed El-Hoshy, noted at the time that the offtake agreement ensures the economic viability of the Egypt Green Hydrogen project by securing demand for green ammonia from European markets.
He add that it aligns with Egypt’s strategic goal of becoming a global leader in renewable energy and a critical supplier of green hydrogen.
Since its inception, the Egypt Green Hydrogen project has received support from a wide array of stakeholders, both locally and internationally.
The project, which will be powered by 270 MW of solar and wind energy, is set to produce approximately 13,000 tonnes of renewable hydrogen annually. The hydrogen will be used as a feedstock for the production of renewable ammonia at Fertiglobe’s ammonia plant in Ain Sokhna, with an expected output of up to 74,000 tonnes of renewable ammonia each year.
“We are grateful for the Egyptian government´s leading role in supporting this pioneering project and we look forward to continuing to work with the relevant stakeholders to establish Egypt as a regional green hydrogen hub. With Fertiglobe securing an offtake agreement for the ammonia, Egypt Green Hydrogen will accelerate the project’s development and advance it towards financial close,” said Pilskog.
The next step for Scatec and its partners is to select the supplier of the electrolyser, a critical component of the hydrogen production process.
The consortium will continue to work towards securing financial closure for the project, which is expected in the first half of 2025.
Funding will come from several prominent international institutions, including the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), and US International Development Finance Corporation (DFC).
The project’s strategic location within Egypt’s Suez Canal Economic Zone (SCZONE) further strengthens its potential as a key driver of green transformation in the region.
As the first major green hydrogen plant in Africa, the project will serve as a model for similar ventures in the region, highlighting the importance of public-private partnerships in driving the energy transition.
