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Masdar, UAE’s prominent clean energy company, Infinity Power, the largest renewable energy developer in Africa, and Hassan Allam Utilities, an investment platform focused on sustainable infrastructure, have formed a consortium and signed an agreement with Egypt’s New and Renewable Energy Authority.
The agreement is for securing land to construct a 10 GW onshore wind farm in Egypt, expected to be one of the largest in the world and valued to be over US$ 10 billion.
Masdar, the consortium’s leader, is deeply committed to helping African nations such as Egypt fulfil their renewable energy objectives. Given that UAE will be hosting COP28, this development also showcases its commitment to helping Egypt achieve its renewable energy goals.
The agreement was signed in Cairo on June 6, 2023, in the presence of the following dignitaries:
- Egyptian Prime Minister, HE Moustafa Madbouly,
- HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology,
- HE Dr Mohamed Shaker El-Markabi, Minister for Electricity and Renewable Energy, Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar,
- Nayer Fouad, Chief Executive Officer of Infinity Power, and
- Hassan and Amr Allam, Chief Executive Officers of Hassan Allam Holding
The agreement to develop the project was initially signed between Masdar, Hassan Allam Utilities and Infinity Power and the Egyptian Electricity Transmission company last year during the UN climate change conference, COP27, in Sharm El Sheikh, Egypt.
This project is expected to generate 47,790 GWh of clean energy every year. It will also help Egypt to reduce its annual carbon emissions by 9 per cent by displacing 23.8 million tonnes of carbon dioxide every year. Additionally, the wind farm will help Egypt fulfil its strategic objective of procuring 42 per cent of its energy from renewable sources by 2030 and help it to save approximately US$ 5 billion in annual natural gas expenses.
Masdar has solidified its position as the largest renewables operator in Africa after signing a joint venture agreement with Egypt’s Infinity to form Infinity Power. It then acquired Lekela Power, a renewables developer with operations throughout the continent. Masdar has also committed to other African nations by signing agreements in January 2023 to develop renewable energy projects of a total capacity of up to 5 GW in Angola, Uganda, and Zambia.
Egypt is not only the most populous country in the Middle East and North Africa region but is also blessed with abundant renewable energy resources. As a renewables player, Masdar has established a strong presence in Egypt, with projects dating back to 2015. The new project is only a stepping stone for the company to increase its reach across Africa through Infinity Power.
At COP27 last year, Masdar, Infinity Power, and Hassan Allam Utilities also executed agreements with Egyptian state-backed organizations to establish facilities for the production of green hydrogen and its derivatives. The consortium aims to achieve a capacity of 4 GW by 2030 and produce up to 480,000 tonnes of green hydrogen annually.
Speaking about the development, HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate, said: “This 10GW onshore wind project is set to be one of the largest wind farms in the world, and largest on the African continent. It is a sign of the strong partnership between the UAE and Egypt, with great potential to create jobs, cut emissions and power homes with clean electricity at competitive economical costs. The world needs to triple renewable energy capacity by 2030 to meet the goals of the Paris Agreement. Projects like these will support the global efforts to reduce the impact of climate change and help keep the ambition of 1.5 intact while enabling significant socio-economic growth. The UAE looks forward to hosting COP28, we continue to stand shoulder-to-shoulder with the Global South in their efforts to decarbonize and secure a just energy transition.”
HE Dr Mohamed Shaker Al-Markabi, Minister of Electricity and Renewable Energy in Egypt, added: “Egypt has an ambitious program to advance the Egyptian electricity sector in various fields, foremost of which is optimizing the use of new and renewable energy resources and encouraging investment in this field, which would contribute to reducing dependence on fossil fuels and continue to reduce carbon emissions, in line with Egypt’s energy strategy to have up to 42 percent of our energy mix from renewable energy sources by 2030, while complementing the National Climate Strategy 2050 to face the challenges of climate change and achieve sustainable economic growth.”
He further added: “This project represents a continuation of the historical and brotherly relations between the Arab Republic of Egypt and the UAE and reflects the fruitful and constructive cooperation between the two brotherly countries. Renewable energy in Egypt has the potential to attract direct foreign investments, and the national Egyptian entities play a vital role in creating an environment that is supportive of investment with low risks, and high interaction with the financing institutions and development partners. In addition, Egypt has comparative advantages in terms of the land available which is necessary to produce a huge volume of electricity from renewable resources. Furthermore, Egypt’s geographical location enables it to export green energy to Europe, especially as the country looks to further enhance and raise the efficiency of its national grid.”
Mohamed Jameel Al Ramahi, CEO, Masdar, said: “Masdar is proud to be working with global partners to maximize our direct impact on Egypt in all fields of business and economy, and help addressing urgent global sustainability challenges and supporting the global efforts to develop sustainable solutions to produce energy using the latest available technologies with the lowest competitive cost. This mega project – which will transform lives and livelihoods – is the culmination of hard work, dedication, and steadfast partnership between Masdar, our joint venture – Infinity Power – and Hassan Allam Utilities.”
Nayer Fouad, CEO, Infinity Power said: “This project is a milestone achievement for us at Infinity Power, which reflects the partnership between Masdar and Infinity Power as a leading investment platform in renewable energy. It not only positions us as a leading provider of renewable energy but also strengthens the growing relationship between the Emirates and Egypt. Apart from being a key source of renewable energy, the farm will also create employment opportunities for local communities.”
Amr Allam, CEO, Hassan Allam Holding said: “I am proud to witness the launch of the development of our planned 10 GW wind energy program, in partnership with Masdar, and Infinity Power. In addition to helping meet Egypt’s growing energy needs, the project aligns seamlessly with the nation’s sustainable development goals. We are confident that this collaboration will deliver on its targets, paving the way towards a more eco-friendly and prosperous future for Egypt.”
