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Scatec ASA, a leading provider of renewable energy solutions, has signed a 25-year USD-denominated corporate Power Purchase Agreement (PPA) with Egypt Aluminium for a 1.1 GW Solar PV and 100 MW/200 MWh BESS project in Egypt, supported by a sovereign guarantee. As Egypt’s largest aluminium producer and industrial electricity consumer, Egypt Aluminium exports around 60% of its production to Europe. This Solar PV + BESS project will play a key role in the company’s efforts to decarbonize its aluminium production and comply with the EU’s upcoming Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026.The total estimated capital expenditure for the Solar PV + BESS project is around USD 650 million, with approximately 80% of the funding coming from non-recourse project debt and the remaining portion provided through equity from Scatec and its partners. While Scatec currently owns 100% of the project, it plans to reduce its long-term economic interest by bringing in additional equity partners. Scatec will serve as the designated EPC service provider, responsible for about 90% of the total capex, and will also manage the project’s assets (AM) and provide operations and maintenance (O&M) services. Next steps for the project include collaborating with relevant authorities to allocate land, finalize grid connections, and secure financing. Scatec aims to reach financial close and begin construction within the next 12 months.“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,” said Scatec CEO Terje Pilskog. |
