The signing, held at the Ministry of Public Business Sector headquarters, took place between Dandara Solar Power, a subsidiary of Norway’s renewable energy leader Scatec ASA, and major multilateral financial institutions: the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).
Norway's Ambassador to Cairo, Eric Hougsum, was also
present.
Scatec ASA, through its Egyptian subsidiary, is set to build
and operate the project for 25 years. The solar farm is expected to secure a
significant portion of the EgyptAlum plant's electricity needs, which is one of
the state-owned Holding Company for Metallurgical Industries’ subsidiaries. The
project is projected to cut the plant's greenhouse gas emissions by up to 30%,
making it the first large-scale industrial decarbonisation project in the
region.
Minister Shimi hailed the project as an unprecedented strategic
shift for Egypt's aluminum industry, aligned with the state's plan to expand
renewable energy and the political leadership's directives to promote
environmental sustainability. He noted the project will reduce operating costs,
boost production efficiency and competitiveness for the Egyptian product, and
enable EgyptAlum—which exports over 50% of its output, mainly to the European
Union—to remain competitive against the EU’s Carbon Border Adjustment Mechanism
(CBAM).
"The partnership with Norwegian company Scatec and
international financial institutions reflects the confidence of foreign
investors in the Egyptian market," Shimi said, asserting the Ministry's
continuous support for public-private partnerships.
Dr. Al-Mashat highlighted the Dandara project as one of the
key initiatives under Egypt’s national "NWFE" programme, which aims
to increase the country's renewable energy capacity by approximately 10
gigawatts by 2028. She noted that the NWFE programme, since its launch in
November 2022, has mobilised about $4 billion in concessional financing from
development partners for the private sector to implement 4.2 GW of renewable
energy projects.
She stressed that the project not only boosts Egypt's
renewable capacity but also supports the green transition of the vital aluminum
industry by providing clean, cost-competitive energy, thus ensuring compliance
with the European CBAM. Al-Mashat also noted that the Ministry of Planning
allocated approximately EGP 6.7 billion from the economic and social development
plan reserves last fiscal year to connect four renewable energy projects to the
national grid, enhancing its stability.
The LOIs were signed by Mohamed Amer, Chairman of Dandara Solar Power and Scatec ASA Vice President, Marc Davies, EBRD Managing Director for Southern and Eastern Mediterranean, Guido Clary, EIB Regional Hub Head for North Africa and the Near East, and Abdurahman Diaw, AfDB Country Manager.