Norwegian renewable energy firm Scatec ASA has signed a 25-year corporate Power Purchase Agreement (PPA) with Egypt Aluminium for a 1.1 GW solar photovoltaic (PV) and 100 MW/200 MWh battery energy storage system (BESS) project in Egypt.
The deal, denominated in U.S. dollars and backed by a sovereign guarantee, marks a significant step toward industrial decarbonization in the region.
Egypt Aluminium, the country’s largest aluminium producer and industrial electricity consumer, exports around 60% of its output to Europe.
The solar and storage project is expected to help the company meet the European Union’s Carbon Border Adjustment Mechanism (CBAM) requirements, which take effect in 2026, by reducing the carbon footprint of its production.
Scatec aims to secure land allocation, finalize grid connections, and complete financing in the coming months, targeting financial close and the start of construction within a year.
“This is another testament to Scatec’s position as one of the leading renewables companies in Egypt. It is a groundbreaking project as it is the first utility-scale PPA in the country with an industrial offtaker,” said Scatec CEO Terje Pilskog. “I would like to thank all parties involved, especially our partners at Egypt Aluminium. Our team has shown great persistence and creativity in securing this agreement and bringing new solutions to the market.”
The total capital expenditure for the solar PV and BESS project is estimated at $650 million, with approximately 80% funded through non-recourse project debt. Scatec, which currently holds a 100% stake, plans to bring in additional equity partners to reduce its long-term economic exposure.
Scatec will lead the project’s engineering, procurement, and construction (EPC) services, accounting for 90% of the total capex, while also serving as the asset manager and operations and maintenance (O&M) provider.
