Egyptalum, Scatec sign $650mn solar power deal in Upper Egypt

Published: 2025-07-08 09:25:08 ET SCATC.OL

Published on 07/08/2025 at 09:25

Egyptalum (Egypt Aluminium Company), a subsidiary of the state-owned Metallurgical Industries Holding Company, has signed a major $650mn agreement with Norwegian Scatec’s local subsidiary Mashroa to build a solar power plant in Upper Egypt, Al Mal reported on July 8.

The solar facility, with a total planned capacity of 1,000 MW, will supply clean electricity to Egyptalum’s aluminium complex in Nag Hammadi. It will help raise the company’s market value to approximately $1.4bn.

According to a Ministry of Public Enterprise Sector statement, the project will be fully financed and implemented by Scatec. The agreement follows a power purchase agreement (PPA) structure, where Scatec is responsible for financing, constructing, and operating the solar facility.

The solar plant will be constructed in two phases over 24 months. Each phase will deliver 500 MW. The project includes battery storage systems with a total capacity of 200 MW to stabilise the power supply.

Egyptalum’s aluminium complex in Nag Hammadi is a major energy consumer. The project aims to secure sustainable, cost-effective power.

In mid-March this year, Scatec said it signed an initial 25-year US dollar-denominated corporate PPA with Egyptalum to establish a main solar project in Egypt.

Scatec said in May it secured $120mn in equity bridge loans to support construction of the 1.1-GW Obelisk solar project in Egypt and a 100-MW/200-MWh battery energy storage system, including $90mn from the Arab Energy Fund and $30mn from the European Bank of Reconstruction and Development (EBRD).