Ministers of Planning, Economic Development and International Cooperation, and Public Business Sector, along with Norwegian Ambassador, Witness Signing of Letters of Intent to Finance "Dandara" Solar Energy Project to Power "Egyptalum" Complex with Clean Energy

Dr. Rania Al-Mashat:

Over US$4 Billion in Financing for the Private Sector from International Finance Institutions to Implement 4.2 GW Renewable Energy Projects under the "NWFE" Program

The project fosters the access of Egyptian exports to the European market by adapting to the European Carbon Border Adjustment Mechanism (CBAM).

"NWFE" program projects contribute to boosting Egypt's renewable energy capacity, supporting the stability of the National Electricity Grid, and increasing foreign investment in the sector.

 

Eng. Mohamed Shimi:

The project is a qualitative leap for the aluminum industry and enhances the global competitiveness of the Egyptian product.

Reducing operating costs and lowering carbon emissions are among the main objectives of the project to support sustainability and export capacity.

The partnership with "Scatec" and international institutions reflects investors' confidence in the Egyptian economy and solidifies Egypt's leadership in green industrial transformation.

 

 

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, H.E. Eng. Mohamed Shimi, Minister of the Public Business Sector, and H.E. Erik B. Husem, Ambassador of the Kingdom of Norway to Cairo, witnessed the signing ceremony of the Letters of Intent regarding the financing of the "Dandara" Solar Energy Project.

The project's production is dedicated to supplying the Egypt Aluminium (Egyptalum) complex in Nagaa Hammadi, Qena Governorate, which is one of the subsidiaries of the Holding Company for Metallurgical Industries under the Ministry of the Public Business Sector.

The signing took place between Dandara Solar Energy Company (the Project Company), a subsidiary of the Norwegian company Scatec ASA, a global leader in renewable energy, and the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).

Scatec ASA, through its subsidiary in Egypt, is scheduled to build and operate the project for 25 years. The project will secure a significant portion of the factory's electricity needs, reducing greenhouse gas emissions by up to 30%, making it the first large-scale industrial decarbonization project in the region. This will strengthen Egypt Aluminium’s competitiveness against the European Carbon Border Adjustment Mechanism (CBAM) and cement Egypt's position as a leading country in the green industrial transformation.

 

Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, explained that the "Dandara" Solar Energy Project is one of the projects under the "NWFE" Country Platform, which aims to increase Egypt's renewable energy capacity by about 10 GW by 2028. She noted that the project is a result of fruitful cooperation and coordination between the government, international finance institutions, and the Norwegian company Scatec, which is executing several pioneering renewable energy projects in Egypt in cooperation with the Ministry of Electricity and Renewable Energy.

 

Minister Al-Mashat added that since its launch in November 2022, the "NWFE" program has achieved a breakthrough in renewable energy projects in Egypt by mobilizing concessional financing, innovative mechanisms, and technical support from multilateral and bilateral development partners. The total concessional financing secured by the private sector from development partners to implement the program's projects has reached approximately US$4 billion, for the implementation of projects with a capacity of 4.2 GW.

 

Dr. Al-Mashat pointed out that the project witnessed today not only strengthens Egypt's renewable energy capacity but also supports the green transformation of the aluminum industry, a vital sector in Egypt. This is achieved by providing a sustainable and renewable energy source that contributes to reducing emissions through clean energy at a competitive cost, thereby aligning Egyptian industries with the European Carbon Border Adjustment Mechanism (CBAM).

 

Dr. Al-Mashat mentioned that the renewable energy projects under the "NWFE" program contribute to enhancing the stability of the National Electricity Grid and providing sustainable energy sources. She also highlighted that the Ministry of Planning, Economic Development and International Cooperation, in addition to mobilizing concessional financing for the private sector, allocated approximately EGP 6.7 billion from the reserves of the socio-economic development plan in the last fiscal year to connect 4 renewable energy projects to the National Electricity Grid, which helped enhance grid stability during the last summer season.

 

Eng. Mohamed Shimi, Minister of the Public Business Sector, emphasized that the project represents an unprecedented strategic leap for the aluminum industry in Egypt. It falls within the framework of the state's plan to expand the use of renewable energy sources, in execution of the political leadership's directives to consolidate environmental sustainability concepts and improve resource use efficiency, in cooperation with the Ministry of Electricity and Renewable Energy.

The Minister highlighted that the project aims to reduce the aluminum complex's operating costs, raise production efficiency, and support the competitiveness of the Egyptian product, while simultaneously reducing reliance on traditional energy and lowering carbon emissions. This will allow Egypt Aluminium to continue its expansion in global markets, especially since the company exports over 50% of its production, most of which goes to the European Union.

Eng. Mohamed Shimi indicated that the partnership with the Norwegian company Scatec and the international finance institutions reflects foreign investors' confidence in the Egyptian market and their keenness to contribute to major national projects with sustainable environmental and economic returns. He affirmed the Ministry's continuous support for partnerships with the local and foreign private sector and cooperation with international finance institutions.

The Minister concluded his remarks by stressing that the project represents a pioneering model for partnership between the state, the private sector, and international investors. It positions Egypt as a country capable of leading industrial decarbonization projects in the region and strengthens its role as a regional power in the field of renewable energy and low-emission industry.

 

The Letters of Intent were signed by: Mohamed Amer, Chairman of the Board of Dandara Solar Energy S.A.E. and Executive Vice President at Scatec ASA, Mark Davis, EBRD Managing Director for SEMED, Guido Clary, Head of the EIB Regional Hub for North Africa and the Near East, and Abdourahmane Diaw, AfDB Country Manager.

Ministers of Planning, Economic Development and International Cooperation, and Public Business Sector, along with Norwegian Ambassador, Witness Signing of Letters of Intent to Finance "Dandara" Solar Energy Project to Power "Egyptalum" Complex with Clean Energy