The Egyptian Ministry of Electricity and Renewable Energy has signed a $5 billion agreement with the Norwegian utility company Scatec to develop a 5GW wind farm in the southern part of the country. The domestic cabinet confirmed that a piece of land in Sohag Province has been reserved for the project.

The agreement was signed at a ceremony attended by Mustafa Madbury, Prime Minister of Prime Minister of Egypt, Mohamed Shacker, Minister of Electricity, and Hilde Clemetsdar, Norwegian Ambassador to Cairo.

The cabinet stated that the farm will be one of the many renewable energy projects launched in the past decade, as Egypt's goal is to generate 42% of its energy demand through renewable energy by 2030.

Scatec has been operating in Egypt since 2017, after signing a 25 year electricity purchase agreement to export 380 megawatts of electricity generated by six Egyptian factories to Europe annually.

The company also signed an agreement with Egypt in May to build the first green methanol production plant in North Africa in Damieta Province, Nile Delta. The transaction is expected to attract a total of $450 million in foreign investment.

In 2022, Scatec also signed a $6 billion agreement with the Egyptian government to produce green hydrogen gas at a factory in the Red Sea city of Ainsuhna. Attracting foreign investment in the power sector is a priority for the Egyptian government cabinet.

The Arab country with the largest population in the World population is also trying to become a larger European power exporter through the Submarine communications cable, which will connect Egypt and Attica in Greece. The Submarine communications cable is expected to be completed in seven years, and it will deliver 3000 MW of power from Egypt to the European grid every year.

Scatec also owns and operates Benban Solar Park in Aswan Governorate Province, Egypt, which is one of the largest solar parks in the world with a total capacity of 1.8 GW.Editor/XingWentao