Economic Development and International Cooperation Rania Al-Mashat, and Norway’s Ambassador to Cairo Erik Høeg.
The signing of the agreement was witnessed by Minister of Public Business Mohamed Shimi, Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat, and Norway’s Ambassador to Cairo, Erik Høeg, in a ceremony held at the Ministry of Public Business.
The project, led by Norwegian renewable energy firm Scatec ASA through its local subsidiary, will be developed and operated for a period of 25 years. It marks the region’s first large-scale industrial decarbonization effort and is expected to significantly reduce EgyptAlum’s reliance on fossil fuels while boosting its competitiveness in European markets under the EU’s Carbon Border Adjustment Mechanism (CBAM).
“This is a strategic leap for Egypt’s aluminum industry,” said Shimi. “It aligns with the state’s push for renewable energy and environmental sustainability, and will help EgyptAlum expand its global footprint, especially in the EU, which already receives over half of its exports.”
The letters of intent were signed between Dendera Solar Energy Company and three major development banks: the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).
Minister Al-Mashat said the project is part of Egypt’s NWFE platform, which aims to add 10 GW of renewable energy capacity by 2028. Since its launch in 2022, NWFE has mobilized $4 billion in concessional financing for private-sector-led clean energy projects totalling 4.2 GW.
“This project doesn’t just expand Egypt’s renewable energy capacity, it transforms one of our most vital industries,” Al-Mashat said. “It provides a sustainable, cost-effective energy source that aligns Egyptian exports with global climate regulations.”
She added that the Planning Ministry allocated EGP 6.7 billion last fiscal year to connect four renewable energy projects to the national grid, helping stabilize electricity supply during peak summer months.
Scatec’s Executive Vice President, Mohamed Amer, signed the agreement alongside representatives from EBRD, EIB, and AfDB.
In September, Egyptian President Abdel-Fattah El-Sisi met the heads of Norway’s Scatec and China’s Sungrow to discuss major green investment projects, including a proposed 10-gigawatt battery storage plant.
During the meeting, the president asserted Egypt’s commitment to renewable energy collaboration.
In March, Scatec inked a 25-year US dollar-denominated corporate power purchase Agreement (PPA) with Egypt Aluminium for a 1.1 GW Solar PV + 100 MW/200MWh BESS project in Egypt backed by a sovereign guarantee.
A gradual transition to a green economy is a key component of Egypt's Narrative for Economic Development, which outlines the country's economic roadmap through 2030.
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