The European Bank for Reconstruction and Development (EBRD) has approved an equity investment of up to USD 75 million (EUR 68.5 million) in HAU Energy BV, a funding vehicle established by Hassan Allam Utilities (HAU).
The investment aims to fund the development and construction of renewable energy projects in Egypt, notably the 1.1 GW Gulf of Suez wind farm. The project aligns with Egypt’s commitment to achieving renewable energy targets and promoting private sector participation in the power sector.
HAU Energy BV, a Netherlands-based company, is seeking to raise capital for renewable energy projects, with a particular focus on the development of the 1.1 GW Gulf of Suez wind farm. The primary goal of this initiative is to contribute to the advancement of renewable energy projects and reduce carbon dioxide (CO2) emissions by an estimated 2.8 million tonnes per year.
To support this endeavour, the European Bank for Reconstruction and Development (EBRD) is committing up to USD 75 million in equity. The total cost of the project is estimated at USD 300 million. The project falls under Category B (2019 ESP), aligning with the objective of promoting renewable energy development in Egypt.
The immediate sub-project under consideration is the 1.1 GW wind power project located in the Gulf of Suez, categorised as A. Future sub-projects will be evaluated on a case-by-case basis as part of the ongoing commitment to sustainable energy initiatives.
Environmental due diligence is a crucial aspect of the project, with an ongoing assessment focusing on the corporate environmental and social provisions of HAU Energy BV. This includes a comprehensive review of environmental and social documents related to the 1.1 GW sub-project.
Given the location of the Gulf of Suez project along a bird migration flyway, there are biodiversity concerns. To address this, a regional turbine management plan will be implemented to mitigate collision risks and minimise the impact on local bird populations. This underscores the commitment to environmentally responsible practices in the development and operation of renewable energy projects.
The initial public offering (IPO) is set to take place from March 4 to 8, with the planned listing on the PSE main board scheduled for March 15. The anticipated net proceeds from the IPO, totaling USD 10.76 billion, will be strategically allocated towards capital expenditures specifically earmarked for the development of solar energy plants and battery energy storage systems. This funding injection aims to facilitate the expansion and enhancement of the company’s capabilities in the renewable energy sector, emphasising a focus on sustainable and innovative energy solutions.
In a statement from HAU Energy BV, the investment from the European Bank for Reconstruction and Development (EBRD) is heralded as a substantial stride in furthering the company’s dedication to advancing renewable energy initiatives in Egypt. The secured funds are poised to play a pivotal role in the development of sustainable projects, with a primary focus on the Gulf of Suez wind farm. This strategic investment not only aligns with HAU Energy’s commitment to clean energy but also significantly contributes to Egypt’s broader goals of achieving a more sustainable and environmentally friendly energy landscape.
The European Bank for Reconstruction and Development (EBRD) expressed satisfaction in endorsing HAU Energy’s endeavours to foster renewable energy adoption in Egypt. Emphasising the Gulf of Suez wind farm as a significant milestone, the EBRD underlined the importance of its investment in line with its commitment to advancing sustainable and efficient transportation solutions in the region. This support not only reflects the EBRD’s dedication to promoting environmentally conscious projects but also signifies a collaborative effort to contribute to the development of a more sustainable and resilient energy landscape in Egypt.
