Scatec ASA, a Norwegian provider of solutions for renewable energies, announced the signing of a 25-year Power Coling Contrent (PPA) with Egypt-Aluminum, the largest aluminum producer in Egypt. The agreement covers the construction and operation of a solar photovoltaic system of 1.1 gigawatts (Gwatt), combined with a 100 megawatt (MW)/200 megawatt hour-hour battery energy storage system (BESS), which is supported by a sovereign guarantee.
Project goals
The project aims to support Egyptian aluminum in his efforts to decarbonize its aluminum production in response to the requirements of the Carbon Border Adaptation Mechanism of the European Union (CBAM), which will come into force in 2026. Egypt aluminum exports are currently being made available to the preservation of the competition in the international market for the maintenance of the competition in Europe and Europe.
Next steps and financing
The next steps for the project are the cooperation with the responsible authorities to assign land, the conclusion of the grid connection and the secure financing. Scatec aims to reach the financial conclusion and start building within the next 12 months. The overall investment is estimated at around $ 650 million, with 80% of the funds from non-recourse project debt and the rest of the equity of Scatec and its partners.
Scatec's role and impact on the industrial sector
Scatec, which currently has 100% of the project, plans to reduce its long -term economic interest by inviting additional financial partners. The company will be responsible for engineering, procurement and construction (EPC), which covers around 90% of the total investment editions and asset management (AM) as well as Operations and Warting (O&M) services. This project is a significant milestone in Egypt, which is the first PPA in industry in industry with an industrial officer and reflects the growing trend of companies that integrate renewable energy sources into their business activities in order to meet the official requirements and market expectations.