Scatec ASA has entered into a strategic equity partnership to move forward with the large-scale “Obelisk” green hydrogen project in Egypt. The agreement brings together key partners, including Fertiglobe, Orascom Construction, and the Sovereign Fund of Egypt, marking a major step in developing green fuel infrastructure in the region.

The Obelisk project is located in the Suez Canal Economic Zone and aims to produce green hydrogen, which will be used to manufacture green ammonia. This aligns with Egypt’s broader goal of becoming a global hub for clean energy by using its strong solar and wind resources, along with its strategic location near major global shipping routes.

As part of the agreement, the equity structure of the project has been finalized, ensuring long-term commitment from all stakeholders. Scatec will act as the lead developer and hold a majority stake, while Fertiglobe will serve as the main off-taker for the green ammonia produced. This off-take arrangement is important because it guarantees demand for the product, improving the project’s attractiveness for investors and financial institutions.

The facility will run on renewable energy generated from dedicated solar and wind plants. This clean power will be used in electrolyzers to split water into hydrogen and oxygen, producing hydrogen without carbon emissions. The approach is seen as a key solution for reducing emissions in hard-to-abate sectors such as heavy industries and shipping, which are under pressure to decarbonize.

The partnership also highlights the value of international collaboration in advancing green technologies. Scatec brings global experience in renewable energy development, while Orascom and the Sovereign Fund of Egypt contribute local expertise and infrastructure capabilities. This combination is expected to support the smooth execution of the project.

The latest agreement builds on the earlier phase of the project, which was launched during the COP27 held in Sharm el-Sheikh. Moving to a full equity partnership indicates that the project is shifting from a pilot stage to large-scale industrial development. As countries look for alternatives to fossil fuels, the Obelisk project is emerging as an example of how developing nations can play a leading role in the global energy transition.