{"id":611212,"date":"2023-12-04T04:00:00","date_gmt":"2023-12-04T04:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?post_type=issue&p=611212"},"modified":"2025-12-17T02:24:36","modified_gmt":"2025-12-17T02:24:36","slug":"scatec-could-be-doubling-down-on-green-methanol-in-egypt","status":"publish","type":"issue","link":"https:\/\/enterpriseam.com\/egypt\/issues\/scatec-could-be-doubling-down-on-green-methanol-in-egypt\/","title":{"rendered":"Scatec could be doubling down on green methanol in Egypt"},"content":{"rendered":"
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<\/a> PSA- It\u2019s time to go back to WFH if you live or work in Maadi:<\/strong> The Madbouly government is tearing down<\/a> the old North Tora bridge \u2014 the one that splits the former Tora prison from what was previously the prison\u2019s olive garden \u2014 to complete the expansion of the Hasaballah Al Kafrawi axis. The bridge linked the Nile Corniche to the Autostrad and will be replaced by a \u201cNorth Tora Axis\u201d capable of handling more traffic. <\/p>\n

The result yesterday was pure gridlock in Maadi. <\/strong>Officials have said nothing about when<\/a>they expect the new route to open<\/a>, prompting plenty of Maadi companies (Enterprise World Headquarters, included) to opt for a transition to WFH until we see how this shakes up.<\/p>\n

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** DID THIS MORNING\u2019S EMAIL WIND UP IN YOUR TABS? Please drag us to your<\/strong> inbox <\/strong>\u2014 it goes a long way toward making sure Enterprise makes it into everyone\u2019s email inbox.<\/p>\n<\/div>\n

WATCH THIS SPACE-<\/strong><\/p>\n

#1-<\/strong>The IMF will move forward with Egypt\u2019s USD 3 bn loan program \u201csoon, soon,\u201d <\/strong>the Fund\u2019s Managing Director Kristalina Georgieva told Asharq Business<\/a> yesterday in Dubai, without giving further details. Georgieva hailed the Egyptian authorities as \u201cdoing a very good job in a very difficult environment.\u201d<\/p>\n

The IMF is focused now on helping officials here <\/strong>get a grip on soaring inflation<\/strong>, after which it will look at the exchange rate policies, Georgieva told Sky News Arabia<\/a> in a separate interview. Georgieva added that the IMF will very likely scale up Egypt\u2019s current loan program due to the additional burden posed by the war in Gaza, in a repeat of remarks she made last month<\/a>. Inflation surged to successive record highs<\/a> this year on the back of successive currency devaluations and the FX shortage.<\/p>\n

Remember:<\/strong> The IMF postponed reviews scheduled for March and September this year after authorities failed to meet several conditions of the facility, including a commitment to implement a fully flexible exchange rate. The central bank is widely expected to float the EGP after this month\u2019s presidential election in a step expected to pave the way for the country to pass the reviews and receive the almost USD 700 mn in delayed loan payments.<\/p>\n

#2- Officials are mulling the sale of EGP 8 bn worth of real estate assets to investors <\/strong>\u2014 including Saudi ones \u2014in 1Q 2024, Public Enterprise Minister Mahmoud Esmat told Asharq<\/a> yesterday. Heliopolis Housing and Development is among the state-run companies investors are looking at, Esmat said, explaining that the partnerships will see investors developing land plots owned by the state-run companies.<\/p>\n

Remember:<\/strong>The state-owned National Organization for Social Ins. (NOSI) acquired<\/a> 100% of the Heliopark project from Heliopolis last month in a sale worth EGP 15 bn.<\/p>\n

HAPPENING TODAY-<\/strong><\/p>\n

<\/a> #1 It\u2019s day five of COP28 in Dubai: <\/strong>Gender equality will be among today\u2019s main themes: How women are affected by climate change and how climate action and finance can bhelp gae directed to close the gender gap. Other topics of discussion include clean energy transition, mobilizing Islamic finance for climate, and sustainability in finance, trade and investing.<\/p>\n

Planning Minister Hala El Said is in Dubai for the gathering<\/strong> and set to attend the Arab Women Leaders\u2019 Summit with WISER and as well as a session on women\u2019s participation in climate action and sustainable development.<\/p>\n

Want to go deeper on everything happening over there? <\/strong>Enterprise Climate has got your<\/a>back<\/a>.<\/p>\n

<\/a> #2 The <\/strong>Egypt Defence Expo (EDEX)<\/a><\/strong> is finally here: <\/strong>Around 35k defense and security professionals from across the world will land in Cairo today for the opening of the defence expo at the Egypt International Exhibition Center, which runs through Thursday. You can register to attend here<\/a>.<\/p>\n

#3-<\/strong>The CBE plans to auction USD 990 mn in one-year treasury bills<\/strong> today, according to data on its website. The USD-denominated issuance will be settled on Tuesday.<\/p>\n

<\/a> #4- It\u2019s the second day of the World Youth Forum<\/strong>, which is taking place in Sharm El Sheikh. The event wraps tomorrow.<\/p>\n

HAPPENING TOMORROW-<\/strong><\/p>\n

<\/a> PMI:<\/strong> We\u2019ll find out how Egypt\u2019s non-oil private sector performed in November when S&P Global publishes the latest PMI figures.<\/p>\n

HAPPENING THIS WEEK-<\/strong><\/p>\n

FX reserves:<\/strong> November\u2019s foreign reserves figures should be released by the central bank this week.<\/p>\n

HAPPENING NEXT WEEK-<\/strong><\/p>\n

Elections: <\/strong>Voters here at home will head to the polls on 10-12 December to cast their ballots in the presidential election. Voting for expats wrapped yesterday. First-round results are due on 18 December and a runoff, if necessary, will take place in early January.<\/p>\n

AND- Inflation<\/strong> figures are due out on Sunday, 10 December.<\/p>\n

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The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

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THE BIG STORY ABROAD-<\/strong><\/p>\n

Israel\u2019s war on Gaza continues to dominate the world\u2019s attention this morning:<\/strong> The IDF\u2019s escalating attacks in the south of the enclave and a reported attack on a US warship in the Red Sea by the Iran-aligned Houthis are leading coverage in the western press. (Associated Press<\/a> | Reuters<\/a> | Bloomberg<\/a> | Financial Times<\/a> | New York Times<\/a> | Washington Post<\/a> | Wall Street Journal<\/a> | BBC<\/a>)<\/p>\n

THE REALIGNMENT-<\/strong><\/p>\n

One less Bric in the wall: <\/strong>Argentina looks like it\u2019ll be leaving the Brics before it has joined it if the country\u2019s new chief diplomat is to be believed. The South American country \u2014 along with Egypt and four other nations \u2014 was expected to join the alliance of emerging economies on 1 January, a decision that Javier Milei\u2019s new hard-right administration<\/a> will reverse. \u201cWe will not enter the Brics,\u201d incoming foreign minister Diana Mondino wrote on X<\/a> last week, following through on Milei\u2019s campaign pledge for a foreign policy reset that would see the country distance itself from China and strengthen ties with Washington.<\/p>\n

WAR ECONOMICS- <\/strong><\/p>\n

War-swollen defense stocks outperform S&P 500: <\/strong>Defense stocks have outperforming the S&P 500 since the outbreak of the war in Gaza on 7 October, stoking ESG concerns among everyday investors owning shares in index-tracking and target-date funds, the Wall Street Journal<\/a> writes. <\/p>\n

The numbers:<\/strong> Shares of General Dynamics<\/a> have gained 13.5% since the outbreak of the waron Gaza, while RTX<\/a> and Lockheed Martin<\/a> have rallied 18% and 12.2%, respectively. That\u2019s significantly higher than the 6.6% gained by the S&P 500 over the same period.<\/p>\n

For conscious investors:<\/strong>Weapon Free Funds<\/a> is a database, run by the nonprofit organization As You Sow<\/a>, which flags arms makers present in mutual funds and exchange-traded funds. The website traffic has risen 5x in seven weeks following 7 October, according to the WSJ.<\/p>\n

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HELP GAZA-<\/strong><\/p>\n

Want to support relief efforts in Gaza, but don\u2019t know how?<\/strong> We\u2019ve got you. More than 1 mn people in Gaza have been thrown from their homes and every human being there lacks access to food, water, and fuel amid the most intense bombardment any population has endured this century.<\/p>\n

The folks at Talabat are processing donations for a range of Gaza relief appeals <\/strong>by charities including the Egyptian Food Bank and Misr El Kheir. Pay in EGP using your credit card.<\/p>\n<\/div>\n

Or check out <\/strong>our list of charities<\/a><\/strong> to which you can make direct donations<\/strong> via bank deposit and \/ or Fawry.<\/p>\n

ICYMI-<\/strong><\/p>\n

Missed this week\u2019s Inside Industry? <\/strong>In our weekly vertical exploring all things industry and manufacturing, we looked at what the government is doing to boost our marble and granite industry<\/a>.<\/p>\n

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*** It\u2019s Blackboard day:<\/strong> We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed. <\/p>\n

In today\u2019s issue:<\/strong> We looking at signs of growing Russian interest in our education industry \u2014 a sector in which Russia was never previously a player. Foreign interest in K-12 education (sometimes a touchy subject) and in post-secondary education (now required of any new institution that wants to open) has previously been dominated by American, Canadian, British, French, German, and Japanese curricula and by partnerships with UK and Canadian universities.<\/p>\n\n\t<\/div>\n\n\t\n<\/article>\n\n\n

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Scatec could embark on another green methanol project in Egypt:<\/strong>Norwegian renewables developer Scatec has inked a USD 1.1 bn green methanol MoU<\/a> with the Suez Canal Economic Zone (SCZone) yesterday on the sidelines of COP28 in Dubai. The agreement will help Scatec provide ships bunkering at the East Port Said Port with green fuel.<\/p>\n

In detail: <\/strong>The methanol will be produced using a 190 MW electrolyzer that will rely on 317 MW of wind energy and 140 MW of solar energy, with the aim of producing an annual 100k tons of green methanol by 2027. <\/p>\n

This is the second Scatec project unveiled in as many days: <\/strong>On Saturday the company inked an agreement with the Egyptian Electricity Holding Company (EEHC) to build a 1-GW solar and 200-MWh battery storage project<\/a> in Egypt \u2014 the country\u2019s first. The project will be funded by the African Development Bank and will help meet energy needs during periods of heightened demand. <\/p>\n

Another green methanol project? <\/strong>Earlier this year, the Oil Ministry said that Scatec has inked an agreement<\/a> with the Alexandria National Refining & Petrochemicals Company (ANRPC) to work on a USD 450 mn green methanol plant in Damietta. The plant will initially produce 40k tons of green methanol a year, before increasing to 200k tons.<\/p>\n

SCZone wants to <\/strong>roll out green methanol<\/a><\/strong> bunkering services <\/strong>before 2027 \u2014 expanding its bunkering services after receiving requests to supply ships with green methanol and gas. The SCZone has handed out a six-month renewable license<\/a> to OCI subsidiary OCI Hyfuels, giving it the greenlight to roll out green methanol bunkering services at the East and West Port Said ports. The world\u2019s first-ever green methanol-powered container ship berthed in East Port Said<\/a> Port earlier this year.<\/p>\n

Scatec loves Egypt<\/strong>: The Norwegian developer is part of the consortium establishing Egypt\u2019s first green hydrogen plant<\/a>, and earlier this year signed early agreements to construct a USD 450 mn green methanol plant<\/a>, a 1 mn ton-per-year green ammonia plant<\/a>, and and a 3-GW electricity link<\/a> that would transport renewably-generated power from Egypt to Europe.<\/p>\n

And more is in the works<\/strong>: Scatec is constructing a 5-GW wind farm<\/a> worth some USD 5 bn in Sohag. <\/p>\n

ALSO FROM EGYPT IN COP28 -<\/strong><\/p>\n

#1-<\/strong>Egypt to join Blue Med Partnership: <\/strong>Egypt inked a letter of intent to join the Blue<\/a>Mediterranean Partnership<\/a> (BMP) \u2014 a vehicle that aims to mobilize funds and technical assistance for the southern Mediterranean region\u2019s blue economy<\/a>. The BMP will kick off operations early 2024<\/a>. (Statement<\/a>)<\/p>\n

#2- Egypt joins BESS: <\/strong>Egypt joined 10 other nations that committed to the Battery Energy Storage Systems (BESS), which aims to secure 400 GW of renewable energy by 2030 to help solve energy poverty. (Press release<\/a>)<\/p>\n

#3- Environment Minister calls for more funding: <\/strong>Developing nations need an annual USD 160 bn for climate adaptation, Environment Minister Yasmine Fouad said yesterday. (Ahram Online<\/a>)<\/p>\n

MORE GREEN NEWS FROM EGYPT-<\/strong><\/p>\n

Checking in on Benchmark Power\u2019s ammonia plant<\/strong>: The long overdue green ammonia plant courtesy of Benchmark Power International (BPI) is still happening. BPI will set up a USD 1 bn green ammonia plant in Suez, which will produce 183 tons of green hydrogen a day to produce 1k tons of green ammonia, according to a cabinet statement<\/a>. The statement didn\u2019t provide a timeline for the project.<\/p>\n

Over five years in the making:<\/strong> We first heard of the project in 2019, after BPI inked an MoU<\/a> with the state-owned El Nasr for Fertilizers & Chemical Industries. <\/p>\n\n\t<\/div>\n\n\t\n<\/article>\n\n\n

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