Scatec ASA

Regulatory Filings • Jul 11, 2024

Scatec's Egypt Green Hydrogen Project signed 20-year offtake agreement with Fertiglobe, based on H2Global award

Scatec's Egypt Green Hydrogen Project signed 20-year offtake agreement with Fertiglobe, based on H2Global award

Oslo, 11 July 2024: Scatec ASA's Egypt Green Hydrogen project, in partnership

with Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt and the

Egyptian Electricity Transmission Company, reaches a key milestone, after

Fertiglobe secured a green ammonia offtake agreement with Hintco in Germany,

through the first ever H2Global auction.

Based on the award, Fertiglobe and Egypt Green Hydrogen have entered into a 20-

year ammonia offtake agreement. The agreement was signed at the Egypt-EU

Investment Conference in Egypt on 29 June 2024.

"The H2Global award represents a key milestone for the Egypt Green Hydrogen

project in Ain Sokhna, Egypt. This demonstrates the competitiveness of green

hydrogen and ammonia production in Egypt, driven by its abundant renewable

energy resources and strategic geographical location. 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," says Scatec CEO Terje

Pilskog.

In 2021, Scatec and partners agreed to develop, build, own and operate a 100 MW

electrolyser facility to produce renewable hydrogen to be used as feedstock for

the production of renewable ammonia at Fertiglobe's existing ammonia plant in

Ain Sokhna, Egypt. The project will be powered by about 270 MW of solar and wind

power capacity and deliver approximately 13,000 tonnes of renewable hydrogen and

up to 74,000 tonnes of renewable ammonia annually.

Scatec is the lead developer and majority sponsor of Egypt Green Hydrogen with

an ownership share of 52% and will provide EPC services in collaboration with

Orascom Construction. Scatec will further provide O&M and Asset Management

services for the project alongside key technology providers and project

partners.

Next important milestones for the project are to select the electrolyser

supplier and complete the project financing process with the European Bank for

Reconstruction and Development (EBRD), European Investment Bank (EIB), Germany's

development finance institution and KfW subsidiary DEG, British International

Investment (BII), and US International Development Finance Corporation (DFC),

that are providing competitive financing to support the first green hydrogen and

ammonia project in Egypt. The partners expect to reach financial close in the

first half of 2025.

Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, said: "This award marks a

significant milestone for Fertiglobe in advancing sustainable ammonia production

and a further critical step towards FID of Egypt Green Hydrogen, expected in H1

2025. Our selection as the winning bidder in H2Global's pilot auction

underscores our leadership in supplying low-carbon products and our commitment

to shaping a more sustainable future, and I appreciate the work of our

incredible team to make this award possible. We are leveraging this vital

program which makes our investment in sustainable ammonia economically viable,

supporting critical decarbonization technology, while maintaining our

disciplined growth strategy."

Gelsomina Vigliotti, Vice President of the European Investment Bank, said:

"Green hydrogen has a key role to play in the energy transition and in providing

carbon-neutral solutions for industry. The first offtake agreement for hydrogen

produced in Egypt, agreed at the Egypt-EU Investment Conference, represents a

key step for future large-scale investment in the sector. The European

Investment Bank looks forward to strengthening our cooperation with Scatec,

Egyptian and international partners to mobilise investment for large-scale

renewable hydrogen production in Egypt."

Nandita Parshad, Managing Director of the EBRD's Sustainable Infrastructure

Group, said: "The signing of the offtake agreement is a key milestone for the

Egypt Green Hydrogen project with our long standing clients Scatec and Orascom

Construction, as well as the Sovereign Fund of Egypt and Fertiglobe. The EBRD is

proud to support this pioneering project which will produce 13,000 tons of

renewable hydrogen annually and demonstrate the commercial viability of

renewable Hydrogen in Egypt."

Monika Beck, Managing Director at DEG, commented: "It is part of DEG's mission

as an impact and climate financier to promote green hydrogen as a driver of

green transformation. We are delighted to contribute to mobilizing investment in

this milestone project in Egypt together with our esteemed client Scatec and our

development finance partner institutions. We are convinced that it is essential

to join forces to drive forward the green transformation, and the private sector

plays a key role in this."

Iain Macaulay, Director and Head of Project Finance in Africa at BII, said:

"Egypt has the potential to be a global leader in renewable energy generation

and green hydrogen production. I am delighted that BII has been able to provide

project finance to back this landmark project, that will support a green and

sustainable future for the country and showcase the importance of new

technologies in supporting a just transition for the whole African continent."

The project is located in Egypt's Suez Canal Economic Zone (SCZONE), which seeks

to become a major hub for green hydrogen industries. Waleid Gamal Eldien,

Chairman of SCZONE, said: "The Egypt-EU Investment Conference 2024, marked a

vital milestone on Egypt's pathway to become a global green ammonia hub, as we

celebrated the signing of a flagship offtake agreement between Fertiglobe and

Egypt Green Hydrogen, the first green hydrogen plant in Africa, located at the

SCZONE. As first agreement under H2Global auction, the offtake not only

demonstrates the EU support to the emerging green hydrogen industry and the

realization of Egypt's potential, but additionally emphasizes Egypt's

determination to reach its vision, and showcase its comparative advantage

stemming from its abundant renewables resources, industrial land, and its unique

geographic location with ease of access to the world. The agreement is a

testimony of Egypt's leadership and support in mobilizing its resources to

attract foreign direct investments in green projects through the facilitation

provided by its stakeholders."

The H2Global Foundation was established in 2021 to accelerate the emergence of

markets for clean hydrogen and other zero-and low-emission technologies

worldwide. It does so through market-based instruments, such as the H2Global

mechanism, implemented by its subsidiary Hintco. The German Federal Government

has committed EUR 4.43 billion into this initiative.

Please find the announcements by H2Global & Fertiglobe here:

H2Global: News (h2-global.org) (https://www.h2-global.org/news)

Fertiglobe: Newsroom - Fertiglobe (https://fertiglobe.com/newsroom/)

For further information, please contact:

For analysts and investors: Andreas Austrell, VP IR, phone:

+47 974 38 686, andreas.austrell@scatec.com

(https://www.globenewswire.com/Tracker?data=Hb0NQs1FEM_L5UKgknJRBO2ToOiY05Gqblhr

eps0dr8otSUGWZTZhtMmjiagDF65mJUCeQDSNuVTmGDLqf3SVx5okmjOPrnK_uyk5b9jHFjEK65YCypR

Ct7VfqPR3qs8)

(https://www.globenewswire.com/Tracker?data=Hb0NQs1FEM_L5UKgknJRBO2ToOiY05Gqblhr

eps0dr8otSUGWZTZhtMmjiagDF65mJUCeQDSNuVTmGDLqf3SVx5okmjOPrnK_uyk5b9jHFjEK65YCypR

Ct7VfqPR3qs8)For media: Meera Bhatia, SVP External Affairs & Communications,

phone: +47 468 44 959, meera.bhatia@scatec.com

(https://www.globenewswire.com/Tracker?data=i_Z5cgfSzDS6_PBmr57KOQaz5gP87azHZehU

7g0aFFnHtL0jBgt6a1nrQZlNGpusUgbv3Dd8m8TSAv3F9E6qSjonhsodbXE5SZ_dJ3NXrz8=)

About Scatec

Scatec is a leading renewable energy solutions provider, accelerating access to

reliable and affordable clean energy emerging markets. As a long-term player, we

develop, build, own, and operate renewable energy plants, with 4.6 GW in

operation and under construction across four continents today. We are committed

to grow our renewable energy capacity, delivered by our passionate employees and

partners who are driven by a common vision of 'Improving our Future'. Scatec is

headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the

ticker symbol 'SCATC'. To learn more, visit www.scatec.com

(https://scatec.com/) or connect with us on LinkedIn

(https://www.linkedin.com/company/scatec).

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act