Masdar consortium closes deal for $10bn Egypt wind project
ABU DHABI, June 6, 2023
Abu Dhabi Future Energy Company (Masdar) has announced that it has signed an agreement with Egypt’s New and Renewable Energy Authority to secure land for the construction of a 10GW capacity onshore wind farm in the country.
One of the world’s leading clean energy companies, Masdar said the project is being developed as a consortium along with its partners - Infinity Power, Masdar’s joint venture with Egypt’s Infinity and Africa’s largest pure play renewable power company; and Hassan Allam Utilities, a sustainable infrastructure focused investment platform.
The landmark facility, which is set to be one of the largest in the world, will boast a project value of over $10 billion.
The signing in Cairo was witnessed by Egyptian Prime Minister Moustafa Madbouly, Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Dr Mohamed Shaker El Markabi, Minister for Electricity and Renewable Energy, Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, Nayer Fouad, Chief Executive Officer of Infinity Power, and Hassan and Amr Allam, CEOs of Hassan Allam Holding.
It will produce 47,790 GWh of clean energy per year and cut around 9% of Egypt’s annual carbon emissions by displacing 23.8 million tonnes of carbon dioxide annually.
The wind farm will also help Egypt meet its strategic objective of sourcing 42% of its energy from renewables by 2030. The 10 GW plant will save the North African nation an estimated US$ 5 billion in natural gas costs a year.
Masdar said the original agreement to develop the 10GW wind farm was signed by the company on the sidelines of the UN climate change conference, COP27, in Sharm El Sheikh, Egypt last year, along with Hassan Allam Utilities and Infinity Power and the Egyptian Electricity Transmission company in the presence of presidents of the UAE and Egypt.
As the UAE’s flagship renewable energy company, Masdar’s role demonstrates its deep and lasting commitment towards supporting African nations such as Egypt to meet their ambitious renewable energy objectives.
Dr Al Jaber said: "This 10GW onshore wind project is set to be one of the largest wind farms in the world, and largest on the African continent. It is a sign of the strong partnership between the UAE and Egypt, with great potential to create jobs, cut emissions and power homes with clean electricity at competitive economical costs."
"The world needs to triple renewable energy capacity by 2030 to meet the goals of the Paris Agreement. Projects like these will support the global efforts to reduce the impact of climate change and help keep the ambition of 1.5 intact while enabling significant socio-economic growth," he stated.
"The UAE looks forward to hosting COP28, we continue to stand shoulder-to-shoulder with the Global South in their efforts to decarbonize and secure a just energy transition," he added.
Dr Al Markabi said: "Egypt has an ambitious programme to advance its electricity sector in various fields, foremost of which is optimizing the use of new and renewable energy resources and encouraging investment in this field, which would contribute to reducing dependence on fossil fuels and continue to reduce carbon emissions."
"This comes in line with Egypt’s energy strategy to have up to 42 percent of our energy mix from renewable energy sources by 2030, while complementing the National Climate Strategy 2050 to face the challenges of climate change and achieve sustainable economic growth," stated the minister.
In March, Masdar became the largest operator of renewables in Africa after its joint venture with Egypt’s Infinity - Infinity Power - acquired Lekela Power, a renewables developer with operations across the continent.
The Abu Dhabi group also demonstrated its commitment to African nations by signing deals to develop renewable energy projects with a combined capacity of up to 5 GW in Angola, Uganda, and Zambia, in January.
Al Ramahi said: "Masdar is proud to be working with global partners to maximize our direct impact on Egypt in all fields of business and economy, and help addressing urgent global sustainability challenges and supporting the global efforts to develop sustainable solutions to produce energy using the latest available technologies with the lowest competitive cost."
"This mega project – which will transform lives and livelihoods - is the culmination of hard work, dedication, and steadfast partnership between Masdar, our joint venture - Infinity Power - and Hassan Allam Utilities," he noted.
Fouad said for Infinity Power this project is a milestone achievement which reflects the partnership between Masdar and Infinity Power as a leading investment platform in renewable energy.
"It not only positions us as a leading provider of renewable energy but also strengthens the growing relationship between the Emirates and Egypt. Apart from being a key source of renewable energy, the farm will also create employment opportunities for local communities," he noted.
Amr Allam pointed out that in addition to helping meet Egypt’s growing energy needs, the project aligns seamlessly with the nation’s sustainable development goals.
"We are confident that this collaboration will deliver on its targets, paving the way towards a more eco-friendly and prosperous future for Egypt," he added.-TradeArabia News Service
