Scatec ASA, a top renewable energy company, has signed a 25-year power purchase agreement (PPA) with Egypt Aluminium for a major solar energy project in Egypt. The project includes a 1.1 GW solar PV plant and a 100 MW/200 MWh battery storage system (BESS) and is backed by a sovereign guarantee. Egypt Aluminium, the country’s largest aluminium producer and biggest industrial electricity consumer, exports about 60% of its products to Europe.
This project will help Egypt Aluminium cut its carbon footprint and comply with the EU’s Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026. The next steps include securing land, finalizing grid connections, and arranging financing. Scatec aims to complete financing and begin construction within a year.
Terje Pilskog, Scatec CEO, said in a statement, “This is another testament to Scatec’s position as one of the leading renewables companies in Egypt. It is a groundbreaking project as it is the first utility scale PPA in the country with an industrial offtaker. I would like to thank all parties involved for making this happen, especially our partners at Egypt Aluminium. Further, our team has shown great persistence and creativity in securing this agreement and bringing new solutions to the market.”
The project’s estimated cost is around USD 650 million, with about 80% covered by non-recourse project debt and the rest by equity from Scatec and partners. Currently, Scatec owns 100% of the project but plans to bring in additional investors. Scatec will handle engineering, procurement, and construction (EPC) for 90% of the total project cost and will also manage operations and maintenance.
