Scatec hydrogen project overcomes key hurdles
12 July 2024
Norwegian renewable energy developer and investor Scatec has signed a 20-year offtake agreement with Abu Dhabi's Fertiglobe for the green hydrogen-derived ammonia produced at the fertliser company's existing plant in Sokhna, Egypt.
The signing of the offtake agreement between the two partners, which are co-developing the 100MW Egypt Green Hydrogen project, follows Fertiglobe winning a tender and signing an offtake agreement with Germany's Hydrogen Intermediary Network Company (Hintco).
Hintco is an affiliate of the Germany-based non-profit H2 Global, which is facilitating auctions for green hydrogen imports to Europe.
The intercontinental deals provide the proverbial light at the end of the tunnel for the project, which was first announced in 2021.
The project is now expected to reach financial close in the first half of 2025, with key development banks in Europe and the US providing finance.
It is a major victory for all companies involved, especially for Scatec, which owns a 52% stake in Egypt Green Hydrogen, along with Fertiglobe and Egypt's Orascom Construction.
MEED reported in May last year that Scatec withdrew from two planned solar projects in Iraq and a planned green hydrogen project in Oman to focus its resources in Egypt.
In addition to the green ammonia project with Fertiglobe, Scatec along with partners has been exploring the development of green methanol plants, wind power projects and a long-distance interconnector in Egypt that will require investments of at least $13bn in the coming years.
The signing of the offtake deals is also a significant milestone for Egypt, which has courted many investors to develop similar projects in the country despite ongoing currency concerns.
The green ammonia plant in Sokhna is relatively small compared with the projects being planned in Egypt and elsewhere in the region. It will feature a 100MW electrolyser facility powered by an estimated 270MW of solar and wind capacity to produce approximately 13,000 tonnes of renewable hydrogen and up to 74,000 tonnes of renewable ammonia annually, which is just a fraction of the capacity of the $8.4bn Neom green hydrogen project in Saudi Arabia.
However, the offtake and project financing negotiations are not less complex compared to those involved in much larger projects due to the newness of the supply chain, the risks that need to be mitigated, and the uncertainty of demand.
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Oman’s OQ Alternative Energy has invited firms to bid for the engineering, procurement and construction (EPC) contract for a new solar power plant in Block 60.
The Block 60 concession hosts the important Bisat field, comprising about 165 oil wells and three crude oil processing plants.
OQ expects to receive the technical and commercial bids for the solar photovoltaic (PV) project by 27 May.
The scope of work for the EPC tender encompasses the design, procurement, construction and commissioning of a 35MW grid-connected solar PV plant in Block 60 with interconnection to the Bisat substation.
The selected EPC contractor is responsible for designing and engineering the plant, including but not limited to layouts, solar modules, mounting structures, cleaning system, inverters, transformers, cabling, substation connection and balance-of-plant infrastructure.
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In addition to constructing a 100MW solar farm in Liwa, the $80m project includes the supply of substations and other related facilities, MEED reported.
The project is part of the state-backed energy firm’s support for the sultanate’s goal to reach net-zero carbon emissions by 2050.
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13462096/main.jpg -
Read the March 2025 MEED Business Review
6 March 2025
Download / Subscribe / 14-day trial access A record-breaking performance last year underscores the growing influence of Chinese firms in the region’s projects market.
Chinese construction companies secured over $90bn in contracts in the Middle East and North Africa (Mena) in 2024. Their market share was 26% of the $347bn total for the region, according to regional projects tracker MEED Projects.
Within China, it is hard to imagine the scale of growth experienced by the country’s construction sector over the past two decades. Since 2004, it has expanded by over 800%, reaching an estimated value of $4.5tn.This growth has created contractors that are now the largest construction companies on the planet. According to GlobalData, seven Chinese companies are among the top 10 largest construction companies in the world, with China State Construction Engineering Corporation at the top of the list with revenues of $320bn.
MEED's March edition of MEED Business Review looks at why the Middle East presents such an attractive option for these huge Chinese contractors, and discusses their maturing domestic market.
Our latest issue also includes a comprehensive report on the region's upstream oil and gas sector, where offshore investment in 2025 is expected to match – if not surpass – last year's level, and Saudi Arabia is striving to retain its dominance by investing in projects that aim to boost its producton capacity.
This month’s exclusive 13-page market report focuses on Egypt. Despite its challenges – not to mention the controversial suggestion by US President Donald Trump that Gaza’s population should be relocated to Egypt and other Arab countries – Cairo has managed to attract foreign investment and the country’s economy is showing signs of improvement.
Although concerns remain regarding the government’s need to implement structural economic reforms and remedy the growing infrastructure gaps, the total value of awarded contracts in the power sector doubled in 2024 and the construction industry is being bolstered by the $24bn Ras El-Hekma project.
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We hope our valued subscribers enjoy the March 2025 issue of MEED Business Review.
Must-read sections in the March 2025 issue of MEED Business Review include:
> AGENDA:
> Chinese firms dominate the market
> China construction at pivotal juncture> CURRENT AFFAIRS:
> Uncertainty and instability damage Libyan oil sector optimismINDUSTRY REPORT:
Upstream oil and gas
> Offshore oil and gas sees steady capex
> Saudi Arabia to retain upstream dominance> INTERVIEWS:
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> Masdar meets renewable’s moonshot challenge
> Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high
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L&T wins Saudi Arabia and UAE substation orders
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The Power Transmission & Distribution (PT&D) arm of India’s Larsen & Toubro (L&T) has won two contracts to build substations in the GCC.
In Saudi Arabia, the firm has won an order for a 380-kilovolt (kV) gas-insulated substation (GIS). Its scope includes associated reactors and the installation of hybrid GIS bays.
In Abu Dhabi, L&T has received an order to set up a new 220/33kV grid station, along with associated jobs.
The individual contracts are worth between $286m and $573m, based on the company’s project classification. The actual values were not disclosed.
In February, L&T’s Saudi branch won a contract to supply overhead transmission line steel towers for the second portion of the kingdom’s transmission grid, which connects the locations known as the central operating area (COA) and the south operating area (SOA).
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
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Turkish team wins Basra substation contract
6 March 2025
The Washington-based World Bank has announced that a team of Turkish contractors has been awarded a contract to build three substations in Basra, Iraq.
Called the Basra Electricity Dissemination and Development Project (EDDP), the scheme was awarded in November last year to Turkish firms Balikesir Electronik Sanayi Tesisleri and Best Elektrik Taahhut, which offered to build the infrastructure for $52.16m.
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The contract duration is 18 months.
Three other firms submitted bids for the contract. They include Lebanon’s Matalec, which bid $63.65m; Kontrolmatik Technoloji Enerji Ve Muhendislik Anonim Sirketi, also of Turkiye, which offered $63.3m; and India’s Kalpataru Projects, offering $64m.
Coincidentally, Iraq’s Electricity Ministry discussed plans to double the amount of electricity it imports from Turkiye to 600MW in February.
The two countries also reached an agreement for “strategic” energy production projects with the establishment of several new stations and transmission lines.
Iraq periodically suffers from power outages, especially during the summer months, when increased cooling requirements overwhelm its power plants and electricity grid.
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
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Abu Dhabi receives Taweelah C bid
6 March 2025
State utility and offtaker Emirates Water & Electricity Company (Ewec) has received a single bid for the contract to develop and operate the Taweelah C combined-cycle gas turbine (CCGT) independent power project (IPP) in Abu Dhabi.
Ewec requested proposals for the contract on 24 July last year and initially expected to receive bids by 26 December.
The tender closing date was subsequently extended to 28 February.
The Taweelah C IPP will have a generation capacity of up to 2,500MW and is expected to reach commercial operations in the third quarter of 2028.
Industry sources suggest UAE-based Etihad Water & Electricity (Ethad WE) submitted a lone bid for the contract.
The Taweelah C IPP is the first gas-fired power plant project to be procured by Abu Dhabi since 2020, when Ewec awarded Japan’s Marubeni Corporation the contract to develop the Fujairah 3 (F3) IPP.
The Taweelah C IPP project’s power-purchase agreement (PPA) is expected to expire by 2049, making it several years shorter than previous PPAs and in line with the UAE’s plan to reach net-zero carbon emissions by 2050.
A team of UK-based Alderbrook Finance and US-based Sargent & Lundy is providing financial and technical advisory services to Ewec for the Taweelah C IPP.
The project will involve the development, financing, construction, operation, maintenance and ownership of the plant, with the successful developer or developer consortium owning up to 40% of the entity.
The Abu Dhabi government will indirectly hold the remaining equity.
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