Saudi Arabia’s ACWA Power, leading an alliance, has actively entered into a usufruct agreement with the Egyptian government for a substantial 1.1-gigawatt wind energy initiative situated in the Gulf of Suez and Jabal El-Zeit.
The deal was inked by the New and Renewable Energy Authority (NREA) and representatives of the Saudi developer and its partner on the project, Egypt-based engineering, construction, and infrastructure company Hassan Allam Holdings. The signing ceremony took place on Wednesday and was witnessed by Prime Minister Mostafa Madbouly and Mohamed Shaker, Minister of Electricity and Renewable Energy.
Under the agreement, the consortium will work during the development phase to complete site studies and secure financing for the Suez Wind Energy project, which is estimated to cost about USD 1.5 billion (EUR 1.36 billion), Shaker commented after the ceremony.
Once up and running, the wind farm is expected to supply power to about one million households, offsetting 2.4 million metric tonnes of carbon dioxide emissions and saving about 840,000 metric tonnes of fuel per year.
ACWA Power, holding a majority ownership stake, has a 75% interest in the project, while Hassan Allam possesses a 25% share. During COP27 in 2022, the Oman Investment Authority (OIA) actively signed a memorandum to actively investigate the possibility of investing in the initiative, aiming for a potential 10% stake.
