Egypt, Scatec, global lenders sign intent letters for solar project powering Egyptalum
Egypt signed letters of intent on Monday with Norway’s Scatec ASA and several international development banks to finance the Dendera Solar Energy Project, which will supply clean power to state-owned Misr Aluminum (Egyptalum) in Qena.
The project is developed and operated by Scatec through its Egyptian subsidiary under a 25-year agreement. It is expected to cover a large share of Egyptalum’s electricity needs and cut its greenhouse gas emissions by up to 30 per cent, the planning and international cooperation ministry said in a joint statement with the public business sector ministry.
The European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB) signed the letters of intent to provide financing for the project, which forms part of Egypt’s industrial decarbonisation drive.
Public Business Sector Minister Mohammed Sheemy said the deal marks an “unprecedented strategic leap” for Egypt’s aluminium industry and enhances the competitiveness of exports, more than half of which go to the European Union. He said the project would also help Egyptalum comply with the EU’s Carbon Border Adjustment Mechanism (CBAM), which places levies on carbon-intensive imports.
Sheemy said the partnership with Scatec and leading international lenders underscores investor confidence in the Egyptian economy and supports the government’s strategy to expand renewable energy use and cut emissions.
Meanwhile, Planning Minister Rania Al-Mashat said the Dendera project is part of Egypt’s NWFE Initiative, which aims to add 10 gigawatts of renewable capacity by 2028. She said international partners have so far pledged about $4 billion in concessional financing for private renewable projects totalling 4.2 GW under the programme.
“This project not only enhances Egypt’s renewable energy capacity but also advances the green transformation of the aluminium industry – one of our key industrial sectors,” Al-Mashat said.
Attribution: Amwal Al Ghad English
Subediting: Y.Yasser