Page 3 - Phelan Energy Green Ammonia Plant Egypt

Project Review
• Synergy Consulting is an independent global company specializing in Infrastructure Advisory and Project Finance. Phelan Energy Group ‘PEG’ retained our services to verify and audit their proposed Egyptian Hydrogen/Green Ammonia investment.
• We have used our extensive market understanding and hydrogen experience to examine the extensive detail as presented by PEG. In particular, we have examined their ability to deliver on this project.
• We have completed a detailed review on the key areas of Market, Pricing, and Logistics. Our findings are outlined in detail in this Report and show that the market opportunity for Green Ammonia is enormous and virtually certain to materialise, given governmental and multinational commitments. We believe that Green Ammonia will become a new commodity product in the global market and that profitability will be driven by cost of production and outsized market demand. We believe that the pricing outlined in this report is both conservative and achievable.
• We have been provided with full access to the PEG Financial Management team who gave us all required Financial Data and Accounts. PEG is a remarkably successful company in the area of Solar Power, with one of the best financial performance track records in the industry. The PEG (Parent Company) has a strong balance sheet with $150m, Net Asset value, and is debt free.
• The key financial transaction in 2022 was PEG’s self funding of a new 86MW solar farm in South Africa with a construction loan for $125m. We have seen evidence from a leading South African bank, that this loan will be refinanced in the next quarter, thus injecting cash of $125m into the PEG balance sheet, adequate for the $105m to fund their Egyptian Green Ammonia investment.
• Synergy Consulting has raised finance of over $50bn for projects in the past 5 years, including Solar, Wind and Hydrogen. PEG has confirmed their engagement of Synergy Consulting to plan, manage and secure the Egyptian project funding. We plan a mix of supplier ECA, senior debt, and other suitable funding instruments.
• Our team has reviewed the Plan of Execution and Project Timetable, and believe they are achievable, with effective management as well as careful attention to key design considerations, including synchronising lead times for both the solar power facility and the Green Ammonia manufacturing facility.
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