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Egypt, Norway’s Scatec Sign MOU on Green Ammonia Project

Shipping containers pass through the Suez Canal in Ismailia, Egypt October 5, 2021. REUTERS/Mohamed Abd El Ghany
Shipping containers pass through the Suez Canal in Ismailia, Egypt October 5, 2021. REUTERS/Mohamed Abd El Ghany
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Egypt, Norway’s Scatec Sign MOU on Green Ammonia Project

Shipping containers pass through the Suez Canal in Ismailia, Egypt October 5, 2021. REUTERS/Mohamed Abd El Ghany
Shipping containers pass through the Suez Canal in Ismailia, Egypt October 5, 2021. REUTERS/Mohamed Abd El Ghany

Egypt has signed a memorandum of understanding for a $5 billion project with Norway’s Scatec (SCATC.OL) to build its first green ammonia plant in the Suez Canal Economic Zone, the cabinet said on Thursday.

The green ammonia plant near the Red Sea port and industrial zone of Ain Sokhna would have production capacity of one million tons annually with the potential to expand to three million tons, the cabinet statement said.

The deal was agreed between Scatec, the Suez Canal Economic Zone, Egypt's Sovereign Fund and its Ministry of Electricity and Renewable Energy.

Scatec had signed an MOU with Egypt in December to study the development of a green ammonia plant that would be fueled by green hydrogen produced by renewable power.

The plant would be expected to start production in 2025, and the green ammonia would mainly be exported to European and Asian markets where demand for clean ammonia is growing rapidly, a joint statement issued by Scatec on Thursday said.

Egypt will host the COP27 climate conference in November and is pushing to develop green energy projects, including for the production of green hydrogen.

Separately, Egypt's annual urban consumer price inflation surged to its highest in nearly three years in February, driven by a sharp increase in food prices, figures from the state statistics agency CAPMAS showed on Thursday.

Inflation rose to a higher-than-expected 8.8% year on year from 7.3% in January, putting it near the upper limit of the central bank's 5-9% target range and indicating that the bank's monetary policy committee may increase interest rates when it meets on March 24.

February's inflation figure was the highest since June 2019.

Food prices rose 4.6% month on month in February, with vegetable prices jumping 17.2%.

Prices were pushed upwards by an increase in raw material and commodity prices worldwide that has been going on since the beginning of 2021, said Radwa El-Swaify of Pharos Securities Brokerage.

"Companies at the end of 2020 had stocked up on cheap inventory and were using it during 2021. So once this cheap stock started to deplete and they were buying at the higher prices, they started to become more expressive in terms of their own price increases,” she said.

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Arab World

Baghdad Urges Washington to Prevent ‘Imminent’ Israeli Strikes

Sudani visiting a market in Baghdad on Thursday (Government media)
Sudani visiting a market in Baghdad on Thursday (Government media)
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Baghdad Urges Washington to Prevent ‘Imminent’ Israeli Strikes

Sudani visiting a market in Baghdad on Thursday (Government media)
Sudani visiting a market in Baghdad on Thursday (Government media)

Iraqi Prime Minister Mohammed Shia Al-Sudani on Thursday called on major powers to “exert greater efforts to end the war in Palestine and Lebanon.” Meanwhile, an Iraqi government official urged the United States to “prevent any attacks on the country,” referring to potential Israeli strikes.
During a phone conversation with Russian President Vladimir Putin, Al-Sudani stressed the importance of ensuring the conflict does not escalate “to a level that threatens regional and global stability.”
The Iraqi prime minister’s appeal comes amid reports suggesting that Israel may launch strikes on Iraq in retaliation for attacks by Iraqi armed factions targeting Israeli positions.
The Iraqi government is striving to assert its exclusive authority over weapons and war-related decisions. However, armed factions affiliated with the Axis of Resistance openly claim responsibility for near-daily rocket attacks on Israel. This has provided Israel with a justification for potentially targeting Iraqi territory, especially after it filed a complaint with the UN Security Council against six Iraqi factions and held Baghdad responsible for the attacks.
These factions have also openly declared their involvement in the ongoing conflict with Israel in Lebanon and Gaza. The Iraqi government has been unable to take decisive action to halt the activities of these factions, which many believe could soon expose Iraq to an Israeli strike.
According to media reports, Washington has warned Baghdad that Israeli airstrikes on Iraq are “imminent” unless the Iraqi government curtails attacks by Iranian-backed factions on Israel. The Times of Israel cited sources indicating that the United States has “exhausted all means of pressure on Israel” and urged Iraq to act swiftly to prevent such attacks.
Despite repeated assurances from the Iraqi government—including its recent adoption of 12 measures by the National Security Council to counter Israeli threats and complaints—the situation remains tense. These measures include monitoring Iraq’s western borders, preventing factions from launching attacks, and maintaining Iraq’s neutrality in the ongoing conflict.
On Wednesday, Abu Hussein Al-Hamidawi, Secretary-General of Kata’ib Hezbollah, made a striking statement on the role of resistance factions in the war and their commitment to the Unity of Fronts doctrine frequently mentioned by Axis of Resistance groups.
In an interview published by the faction’s media arm, Al-Hamidawi said: “The continuity of the Unity of Fronts concept depends on what the Lebanese Hezbollah decides.”
Al-Hamidawi also emphasized that resistance factions are constantly coordinating internally and with external partners such as Hezbollah, the Houthis, and Palestinian resistance leaders.
“We aim to ensure that the Palestinian people are not left alone and that the Unity of Fronts remains intact,” he stated.
Fadi Al-Shammari, a political advisor to Sudani, reiterated that Israel’s threats “are not new,” citing the recent complaint filed by Israel with the UN Security Council as part of its pattern of issuing threats.
In media statements, Al-Shammari reaffirmed the Iraqi government’s long-standing position: “The decision of war and peace lies solely with the Iraqi government.”
He noted that the factions’ attacks are being launched from areas outside Iraq’s borders, specifically from Syria. However, he stressed that the Iraqi government is working through its security and military agencies to prevent Iraq from becoming a battlefield for external or internal parties.
Al-Shammari also called on the United States to fulfill its responsibilities under the Strategic Framework Agreement and security pact with Iraq, emphasizing the need to deter and respond to any external attacks that threaten Iraq’s internal security.