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The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are joining forces to support energy efficiency in Egypt’s manufacturing sector. The EBRD is providing a financing package of up to €25 million to Arabian Cement Company (ACC), a leading cement producer in Egypt. This is being supplemented by first loss risk cover provided through the EU’s European Fund for Sustainable Development Plus (EFSD+) to accelerate the green transition for industrial processes in the Egyptian market. This financing package aims to help reduce carbon-intensive production processes and support ACC’s decarbonisation initiatives, promoting environmentally responsible industrial practices. The resulting reductions in CO2 emissions are expected to total 130,000 tonnes a year. Specifically, this funding will finance the expansion of ACC’s alternative fuel injection capacity, as well as supporting automation and the development of other industrial facilities, in order to improve the company’s efficiency and product mix. One such project will involve the acquisition and installation of a new energy-efficient hydrogen injection system – a first for Egypt’s cement sector. This innovative new system will allow substantial reductions in CO2 emissions by acting as a catalyst and improving combustion efficiency, as well as reducing the consumption of fossil fuels. The financing agreement was signed by the EBRD’s Chief Operating Officer for Client Services and Managing Director of Industry, Commerce and Agribusiness, Jean-Marc Peterschmitt, and the CEO of ACC, Sergio Alcantarilla, in the presence of the EBRD’s Managing Director for the Southern and Eastern Mediterranean, Mark Davis. Mark Davis said: “We are delighted to be signing this agreement, which showcases our continued support for the decarbonisation of the Egyptian cement industry. We are particularly proud of our continued relationship with and support for ACC, financing their promising low-carbon pathway – including the first low-carbon hydrogen injection system in Egypt’s cement industry. With the support of our EU partners, this investment will not only assist ACC in adopting innovative technology, but also promote environmentally responsible industrial practices and complement the country’s decarbonisation efforts, contributing to a greener economy.” Sergio Alcantarilla said: “This agreement with the EBRD is a key milestone in ACC’s sustainability journey, supporting our transition to cleaner technologies. The integration of hydrogen injection technology at our Ain Sokhna plant will enhance operational efficiency and significantly reduce our carbon footprint. By adopting innovative solutions, we are reinforcing our commitment to responsible cement production and strengthening our position as a leader in Egypt’s green industrial transformation.” EFSD+ was established in June 2021 and offers EU partner countries assistance with key investment through grants or financial guarantees. In this way, the EU mobilises additional financial resources for sustainable development from the public and private sectors. EFSD+ has a total global guarantee capacity of €39.8 billion for the period from 2021 to 2027, of which €22.5 billion will be used in the EU’s enlargement and neighbourhood regions. ACC is a leading cement producer in Egypt. Its factory is located in Suez Governorate and produces 5 million tonnes of high-quality cement annually, accounting for approximately 8 per cent of Egypt’s total production. Its certifications include ISO 9001 for quality assurance, ISO 14001 for environmental compliance, OSHAS 18001 for health and safety measures, and ISO 50001 for energy management. The company has been listed on Egypt’s EGX stock exchange since May 2014. Egypt is a founding member of the EBRD. The Bank has invested more than €13.8 billion in the country through 198 projects since it began investing there in 2012. The Bank has also provided technical assistance to more than 750 small and medium-sized enterprises in Egypt. |
