Egypt, Norway ink $650m deal for 1GW solar plant

Egyptalum — a subsidiary of the Metallurgical Industries Holding Company — and a newly formed subsidiary of Norway’s Scatec signed an agreement to establish a 1,000 megawatt-hour solar power plant in Nagaa Hammadi, the Cabinet said.

The $650 million project, to be implemented over 24 months in two equal phases of 500 MWh each, will also include battery storage capacity of up to 200 megawatts and supply clean electricity to the company’s aluminium complex.

Scatec will fully finance, build, and operate the solar facility under a power purchase agreement (PPA), providing a significant share of Egyptalum’s electricity needs from renewable sources, the statement added.

Egypt’s Public Enterprises Sector Mohamed Shimi described the initiative as a game-changer for Egypt’s aluminium industry, aligning with national plans to expand renewable energy use and enhance environmental sustainability. He said the project also represents a successful model of public-private and international investor partnerships.

The solar plant is expected to reduce operational costs, increase Egyptalum’s production efficiency and competitiveness, and cut carbon emissions, while ensuring continued exports—over 50 per cent of the company’s output currently goes abroad, mostly to EU markets.

The minister noted that the project reflects international investors’ confidence in Egypt’s market and the government’s commitment to backing green energy partnerships, as stated in the release.

Attribution: Amwal Al Ghad English