(MENAFN- Daily News Egypt) Egypt is advancing its green industrial transformation with the“Dandara” Solar Energy Project, set to power the“Egyptalum” complex with clean energy. This initiative aims to decarbonise industry, enhance export competitiveness, and solidify Egypt's role as a renewable energy leader.

Ministers of Planning, Economic Development and International Cooperation, and Public Business Sector, along with Norway's Ambassador, witnessed the signing of Letters of Intent for the project's financing. The“Dandara” project is designed as the region's first large-scale industrial decarbonization effort.

The agreements were signed between Dandara Solar Energy Company, a subsidiary of Norway's Scatec ASA, and international finance institutions, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB). Signatories included Mohamed Amer (Dandara Solar Energy, Scatec ASA), Mark Davis (EBRD), Guido Clary (EIB), and Abdourahmane Diaw (AfDB).

The“Dandara” project will exclusively supply electricity to the Egypt Aluminium (Egyptalum) complex in Nagaa Hammadi, a subsidiary of the Holding Company for Metallurgical Industries. Scatec ASA will build and operate the project for 25 years, reducing Egyptalum's greenhouse gas emissions by up to 30%. This move will bolster Egyptalum's competitiveness against the European Carbon Border Adjustment Mechanism (CBAM), critical for Egyptian exports to Europe.

Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, highlighted that over“$4bn in Financing for the Private Sector from International Finance Institutions to Implement 4.2 GW Renewable Energy Projects under the“NWFE” Program.” She noted the project“fosters the access of Egyptian exports to the European market by adapting to the European Carbon Border Adjustment Mechanism (CBAM),” and that“NWFE” projects“contribute to boosting Egypt's renewable energy capacity, supporting the stability of the National Electricity Grid, and increasing foreign investment in the sector.”

Al-Mashat explained that“Dandara” is a key project under the“NWFE” Country Platform, targeting a 10 GW increase inEgypt's renewable energy capacity by 2028. She praised the collaboration between the government, international finance institutions, and Scatec. Since its November 2022 launch, the“NWFE” program has mobilised approximately $4bn in concessional financing for private sector renewable energy projects totalling 4.2 GW.

Al-Mashat added that“Dandara” strengthens Egypt's renewable energy capacity and supports the aluminium industry's green transformation by providing clean, cost-competitive energy, aligning it with CBAM. She also mentioned that NWFE's renewable energy projects stabilise the National Electricity Grid; the Ministry of Planning allocated EGP 6.7bn last fiscal year to connect four renewable energy projects, enhancing grid stability during summer.

Mohamed Shimi, Minister of the Public Business Sector, called the project“a qualitative leap for the aluminium industry and enhances the global competitiveness of the Egyptian product.” He added that“Reducing operating costs and lowering carbon emissions are among the main objectives of the project to support sustainability and export capacity.” Shimi further stated that“The partnership with 'Scatec' and international institutions reflects investors' confidence in the Egyptian economy and solidifies Egypt's leadership in green industrial transformation.”

Shimi emphasised the project's alignment with state plans to expand renewable energy and improve resource efficiency. He reiterated the project's goals of reducing operating costs, increasing production efficiency, and boosting the competitiveness of Egyptian aluminium products, over 50% of which are exported, primarily to the EU.

Shimi affirmed that the partnership with Scatec and international financiers demonstrates foreign investor confidence in Egypt. He concluded that the project is a pioneering model for public-private-international collaboration, positioning Egypt to lead industrial decarbonization in the region and strengthening its role in renewable energy and low-emission industry.

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