Egypt signs land deals for 8 GW of wind projects

The Egyptian government has signed land receipt agreements with Norwegian renewable power producer Scatec ASA (OSL:SCATC) and a group led by Orascom Construction for the development of two wind projects with a combined capacity of 8 GW west of Sohag.

The first deal was signed between the head of Egypt's New and Renewable Energy Authority (NREA) Mohamed Al-Khayyat and Scatec's chief executive Terje Pilskog and concerns the Norwegian company's plan to build a 5-GW wind park, according to a statement by the Egyptian Cabinet on Wednesday.

The second agreement concerns a project developed by a consortium including Orascom Construction, Japan’s Toyota Tsusho Corp (TYO:8015) and Engie (EPA:ENGI). The investors are planning to build a 3-GW wind park.

Following the signing ceremony, Egypt's Minister of Electricity and Renewable Energy, Muhammad Shaker, said that the companies will initiate site studies immediately upon land handover. These studies encompass essential technical assessments and measurements, alongside evaluations of the wind parks' environmental impact and other prerequisites essential for commencing construction.

The two projects were first unveiled in November 2022 during the COP27 summit in Sharm El-Sheikh. They are expected to attract USD 9 billion (EUR 8.39bn) in foreign direct investment (FDI).

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