Scatec ASA's Egypt Green Hydrogen Project Receives €30 Million Grant for Partial Financing
Key Ideas
- Scatec ASA's Egypt Green Hydrogen project secures a €30 million grant from the PtX Development Fund for partial project financing.
- The project, with an estimated total capex of €500 million, involves a consortium of companies including Scatec, Fertiglobe, and Orascom Construction, among others.
- A green ammonia offtake agreement has been secured with Hintco in Germany, facilitated by the H2Global pilot auction funded by Germany's Federal Ministry for Economic Affairs and Climate Action.
- The PtX Development Fund, established by the German Federal Ministry for Economic Cooperation and Development, aims to support Power-to-X projects in developing and emerging countries and this grant is the first approved by the fund.
Scatec ASA's Egypt Green Hydrogen project has received a significant boost with the signing of an agreement with the PtX Development Fund for a grant of €30 million to partially finance the project. The total capital expenditure for the project is estimated to be €500 million. The project is a collaborative effort involving Scatec, Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt (TSFE), and the Egyptian Electricity Transmission Company. In a recent development, the project secured a green ammonia offtake agreement with Hintco in Germany, as part of the first H2Global pilot auction for renewable ammonia. This agreement was made possible through funding from Germany's Federal Ministry for Economic Affairs and Climate Action. The PtX Development Fund, managed by KGAL and established by the German Federal Ministry for Economic Cooperation and Development (BMZ) and KfW, aims to support Power-to-X projects in developing and emerging countries. This €30 million grant represents the first approved grant by the fund, with KfW entrusted with €270 million to bolster Power-to-X markets in these regions.