ACWA Power, in collaboration with Hassan Allam Holdings, seals a landmark usufruct agreement with the Egyptian government for a 1.1 GW wind energy project in the Gulf of Suez and Jabal El-Zeit.
ACWA Power Expands Presence in Egypt’s Renewable Sector
Leading Saudi Arabian energy producer, ACWA Power has taken a significant stride in expanding its footprint in Egypt. Leading an alliance with leading Egyptian construction and engineering firm, Hassan Allam Holdings, ACWA Power has inked a crucial usufruct agreement with the Egyptian government for the development of a 1.1 GW wind energy project.
The project, situated in the strategic Gulf of Suez and Jabal El-Zeit, signifies a robust collaboration between ACWA Power and Egypt-based engineering, construction, and infrastructure giant, Hassan Allam Holdings.
A Strategic Partnership for Sustainable Energy
The New and Renewable Energy Authority (NREA) facilitated the agreement, with Prime Minister Mostafa Madbouly and Mohamed Shaker, Minister of Electricity and Renewable Energy, witnessing the momentous signing ceremony. The consortium, led by ACWA Power, will navigate the development phase, focusing on crucial elements like site studies and financing arrangements for the ambitious Suez Wind Energy project. With an estimated investment of USD 1.5 billion, this initiative is set to bolster Egypt’s renewable energy capacity significantly.
Environmental Impact and Economic Sustainability
Once operational, the 1.1 GW wind farm is poised to become a pivotal contributor to Egypt’s energy landscape. Anticipated to power approximately one million households, the project aims to make substantial environmental strides by offsetting 2.4 million tons of carbon dioxide emissions annually. Additionally, it is projected to save about 840,000 tons of fuel per year, further enhancing its economic and environmental sustainability.
ACWA Power, as the majority owner of the Suez Wind Energy project, will steer the initiative. Hassan Allam has with a 25% interest and the Oman Investment Authority (OIA) expressed interest, signing a memorandum during COP27 in 2022, exploring potential investments with a focus on scaling up to 10%.
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