Executives from Norwegian renewable energy developer Scatec said they were comfortable with the risk profile of a $492m green hydrogen project under development in Egypt.
Scatec is the developer of 270 MW of renewables and 100 MW of electrolysis that will produce green hydrogen under a contract with Fertiglobe. ADNOC-owned Fertiglobe, in turn, was the first winner of H2 Global’s auction process to supply green ammonia to Germany.
The German-backed offtake contract is viewed as a gold standard in the current market for green hydrogen, but still faces questions about its bankability due to several off-market contract provisions, ReSource reported last week.
“We have a 10-year offtake agreement on the project” with Fertiglobe, “we have secured permits for building out the projects, including the renewable energy park, and we are quite mature in terms of the FEED on the project, in terms of securing suppliers, and in terms of the financing process.
International development banks are expected to finance the project, which Scatec says will require capex of $492m with an 80% debt-to-equity ratio.
“So we are quite comfortable with the project and obviously from a technology risk point of view, when it comes to gree, hydrogen and green ammonia, the good thing is that we do the renewable energy part, we do the green hydrogen part together with partners. And the ammonia facility – it’s already there. The storage facility is already there. The port facilities are already there. And we do have a 10 MW pilot facility already operating.”
