Norwegian renewable energy company Scatec has signed a 25-year power purchase agreement (PPA) with Egypt Aluminium to develop a 1.1 GW solar photovoltaic (PV) plant and a 100 MW/200 MWh battery energy storage system (BESS) in Egypt. The project, valued at approximately $650 million, aims to support the decarbonization of Egypt Aluminium’s operations and align with European climate regulations.
The next steps for the project involve securing land allocation from Egyptian authorities, finalizing grid connection details, and obtaining financing. Scatec is targeting financial close and the start of construction within the next 12 months.
Egypt Aluminium, the country’s largest aluminium producer and industrial electricity consumer, exports around 60% of its output to Europe. The solar and storage facility is expected to help the company lower its carbon footprint and meet the European Union’s Carbon Border Adjustment Mechanism (CBAM) requirements, which will take effect in 2026.
