EBRD Approves $75 Million Investment In HAU Energy For Renewable Projects In Egypt

The European Bank for Reconstruction and Development (EBRD) has approved an equity investment of up to USD 75 million (EUR 68.5 million) in HAU Energy BV, a funding vehicle established by Hassan Allam Utilities (HAU). The investment aims to fund the development and construction of renewable energy projects in Egypt, notably the 1.1 GW Gulf of Suez wind farm. The project aligns with Egypt’s commitment to achieving renewable energy targets and promoting private sector participation in the power sector.

Project Details:

• Investment Purpose: To raise capital for renewable energy projects, including the 1.1 GW Gulf of Suez wind farm.
• Transition Impact: The project targets a “Green” quality, contributing to the development of renewable energy projects and reducing CO2e emissions by 2.8 million tCO2 per annum.
• Client: HAU Energy BV, incorporated in the Netherlands for developing and operating renewable energy projects in Egypt and Africa.
• EBRD Finance: An equity commitment of up to USD 75 million.
• Total Project Cost: USD 300 million.

Environmental and Social Summary:

• Categorization: Categorized as B (2019 ESP), the project involves supporting the development of renewable energy projects in Egypt.
• Sub-Projects: The immediate sub-project involves a 1.1 GW wind power project in the Gulf of Suez, categorized as A. Future sub-projects will be assessed on a case-by-case basis.
• Environmental Due Diligence: Ongoing assessment considers corporate E&S provisions of HAU, including a review of E&S documents for the 1.1 GW sub-project.
• Biodiversity Concerns: The Gulf of Suez project, located on a bird migration flyway, will implement a regional turbine management plan to mitigate collision risks.

Next Steps:

• The IPO is scheduled to run from March 4 to 8, with listing on the PSE main board targeted for March 15.
• Net proceeds of USD 10.76 billion will be allocated to capital expenditures for solar energy plants and battery energy storage systems.

Quote from HAU Energy BV:
“This investment from EBRD is a significant step towards advancing our commitment to renewable energy in Egypt. The funds will play a crucial role in developing sustainable projects, starting with the Gulf of Suez wind farm, contributing to the country’s clean energy goals.”

Quote from EBRD:
“We are pleased to support HAU Energy’s efforts in promoting renewable energy in Egypt. The Gulf of Suez wind farm is a major milestone, and our investment aligns with our commitment to advancing sustainable and efficient transportation solutions in the region.”