Scatec signs solar + BESS PPA with Egypt Aluminium: Norwegian renewables developer Scatec has signed a 25-year USD-denominated Power Purchase Agreement (PPA) with Egypt’s largest aluminium producer Egypt Aluminium for a 1.1 GW solar PV plant and a 100 MW/200 MWh Battery Energy Storage System (BESS), according to a press release from Thursday. Scatec will be responsible for the project throughout its lifecycle, including EPC, management, operations, and maintenance.

Financing and ownership: The project is expected to cost USD 650 mn, which will be 80% financed through non-recourse project debt, while the rest will be covered by equity from Scatec and partners. Scatec will be sole owner initially, but it is planning on offloading some stakes to other equity investors on the long-term.

This has been in the works: Scatec was in talks with the Public Enterprise Ministry to set up the plant to power Egypt Aluminium’s production complex in Qena’s Nagaa Hammadi as early as January 2024.

What’s next? Scatec will work to secure land, finalize grid connection, and source funding for the project, the press release adds. The renewables major expects to reach financial close and begin construction within the next 12 months.

Egypt Aluminium wants to decarbonize exports: Egypt Aluminium wants to use this project to help decarbonize its aluminum production, 60% of which is exported to Europe. The decarbonization efforts come as an attempt to meet the EU’s Carbon Border Adjustment Mechanism rules which will come into effect in 2026.

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