Maersk could acquire half of the 545-MW Zafarana wind farm

Maersk could acquire half of the 545-MW Zafarana wind farm after the government approved the shipping giant’s ownership in principle , Al Ma l quotes government sources as saying.

The story so far: The company is yet to submit an official offer for the plant but has contacted the New and Renewable Energy Authority (NREA) expressing interest in acquiring the asset, a government source we talked to yesterday told us. The government is now inviting it to present an official bid and enter negotiations.

Up for grabs:Maersk would acquire assets producing 270 MW of power, according to the newspaper. This would see the compan y obtain a number of the eight separate projects that make up the Zafarana plant, the smallest of which produces 30 MW and the largest 120 MW .

Who owns what: The government owns 50% of the plant, with the remainder held by other international entities, the government source told us , without disclosing their identities. The plant was financed by a series of loans and grants from Germany, Japan, Spain, and Denmark, in addition to NREA borrowing from the National Investment Bank.

Maersk doesn’t need more: The Danish shipping firm is looking to use the energy generated at the farm to produce green fuels but only requires half of Zafarana’s output to achieve this, our source told us.

We’re seeing plenty of interest in state-owned wind farms: The government is looking to secure over USD 300 mn by selling the Gabal El Zeit wind farm, with UK private equity player Actis currently in pole position to buy the facility. Gabal El Zeit and Zafarana were both included in the list of 32 companies and assets earmarked for privatization by the government earlier this year and have attracted interest from investors including Saudi Arabia’s ACWA Power, the UAE’s Alcazar Energy, and our friends at local renewables firm Infinity.

And Maersk is already investing heavily in Egypt: Maersk unveiled plans last year for a USD 15 bn clean fuel project in Egypt as part of the Egyptian government’s plans to position the country as a regional hub for green energy. It plans to work with the Egyptian government to set up a national network to produce and distribute green energy and fuel for ships. The cabinet also approved in May requests by Norwegian renewables producer Scatec and Maersk to allocate a piece of land in the Gulf of Suez for a 320-MW wind farm that will power their green projects, which include a green hydrogen plant and the USD 15-bn clean fuel project for the latter.