Scatec ASA, a leading renewable energy solutions provider, has signed a 25-year USD-denominated corporate Power Purchase Agreement (PPA) with Egypt Aluminium for a 1.1 GW solar PV + 100 MW/200 MWh BESS project in Egypt, backed by a sovereign guarantee.
Egypt Aluminium, the country's largest aluminium producer and a major electricity consumer, exports around 60% of its production to Europe. This project will support its decarbonisation efforts and help meet the EU’s Carbon Border Adjustment Mechanism (CBAM) requirements set for 2026.
Next steps include securing land allocation, finalising grid connection, and arranging financing. Scatec targets financial close and construction start within 12 months.
“This marks a milestone as Egypt’s first utility-scale PPA with an industrial offtaker. I appreciate our partners at Egypt Aluminium and the dedication of our team in achieving this agreement,” said Scatec CEO Terje Pilskog.
The project's total capex is estimated at USD 650 million, with approximately 80% funded through non-recourse debt and the remainder by equity from Scatec and partners. While Scatec currently holds 100% ownership, it plans to invite additional equity partners. Scatec will serve as the EPC provider (90% EPC share), asset manager, and O&M service provider.
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