Egypt, Scatec Ink $650M Deal for Solar Power Plant to Supply Egypt alum Facility

Egypt alum, a subsidiary of the Metallurgical Industries Holding Company, has signed a landmark agreement with a newly formed subsidiary of Norway-based renewable energy firm Scatec to develop a 1,000 megawatt-hour (MWh) solar power plant in Nagaa Hammadi, the Egyptian Cabinet announced.

The $650 million project will be implemented over 24 months in two phases, each with a capacity of 500 MWh. In addition to solar generation, the project includes battery storage of up to 200 megawatts to ensure energy reliability for Egyptalum’s aluminium production complex.

Under the agreement, Scatec will fully finance, construct, and operate the solar facility through a power purchase agreement (PPA), supplying a significant portion of Egyptalum’s energy demand from renewable sources.

Public Enterprises Sector Minister Mohamed Shimi hailed the agreement as a “game-changer” for Egypt’s aluminium industry. He said the project supports national goals to scale up renewable energy, reduce emissions, and improve sustainability, while also strengthening Egyptalum’s global competitiveness.

“This initiative not only reduces operational costs and boosts production efficiency, but it also reinforces Egyptalum’s position in international markets, where over 50% of its output is exported, particularly to the European Union,” Shimi said.

The minister emphasized that the deal demonstrates growing international investor confidence in Egypt’s green energy sector and highlights the government’s commitment to fostering successful public-private partnerships in renewable infrastructure.