Riyadh – Mubasher: Private water desalination company ACWA Power together with consortium partner HAU Energy, a subsidiary of Hassan Allam Utilities, have achieved the financial close for the 1.1-gigawatt GW Suez Wind Farm in Egypt.
The renewables project is the largest single-contracted wind farm in the Middle East in addition to playing an important role in supporting the Egyptian government in achieving its target of increasing the share of renewable energy in its electricity generation mix to 42% by 2040, according to a press release.
The wind farm is expected to achieve full commercial operations by the second quarter (Q2) of 2027.
The project secured a $703.60 million senior debt facility from a consortium of banks, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AFDB), the British International Investment Corporation, the German Investment Corporation, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).
CEO of ACWA Power, Marco Arcelli, said: “The financial close for the Suez Wind Farm marks a significant milestone in Egypt's ambitious renewable energy journey and reinforces ACWA Power's commitment to driving sustainable development in the region.”
The senior debt funded by EBRD included a B loan structure provided by Standard Chartered Bank and Arab Bank.
Arcelli added: “This landmark project demonstrates the power of collaboration and innovative financing to deliver clean, reliable power at scale. We are proud to partner with HAU Energy and our financial partners to bring this transformative project to life, contributing significantly to Egypt's decarbonisation goals and creating long-term economic value.”
Located in the Gulf of Suez and the Gabal El-Zeit area, the Suez Wind Farm has an overall investment value of $1.20 billion. Meanwhile, ACWA Power holds a 70% stake in the project and HAU Energy owns the remaining 30%.
The project will contribute to eliminating 1.10 million tonnes of carbon dioxide annually and will be implemented in two phases with a capacity of 550-megawatt MW for each phase, with a total of 138 turbines.
Furthermore, the capacity of each turbine will reach about 8MW and a height of about 210 metres per turbine.
Co-CEO at Hassan Allam Holding, Amr Allam, said: “ACWA Power, marks a pivotal moment towards a more sustainable future for Egypt. Our joint development efforts and our ability to secure financing for this project alongside our partner underscores our commitment to clean energy and the energy transition, and we are proud to be part of this transformative project that will have a positive impact on Egypt’s energy landscape and beyond.”
From his part, Chief Investment Officer of ACWA Power, Thomas Brostrom, noted: “Securing financing for a project of this magnitude underscores the confidence investors have in our expertise and the viability of the Egyptian renewables market.”
Brostrom concluded: “This project not only diversifies Egypt's energy mix but also serves as a catalyst for economic growth, job creation, and technological advancement in the region.”
It is worth mentioning that ACWA Power has had a presence in Egypt since 2015, and currently has two other facilities in the country that are operational, including a 120MW solar PV project in Benban, and a 200MW solar PV facility in Kom Ombo.
In 2023, the Saudi-listed company was allocated 3,000 square kilometres of land west of Sohag for a 10GW wind project.
ACWA Power, which recently made top managerial appointments, is also exploring opportunities to develop a green hydrogen project in Egypt, with an initial planned capacity of 600,000 tonnes of green ammonia annually.
Meanwhile, HAU Energy, a leading entity in Egypt's renewable energy sector, is backed by a strong shareholding structure comprising Hassan Allam Utilities, Meridiam, and EBRD.
With the strategic support of Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding, HAU Energy has built a robust portfolio of solar and wind projects.
In addition to its co-development role with ACWA Power on the Suez Wind project, HAU Energy is a key partner and developer in major renewable energy investments in Egypt, including a 10GW wind project and a 1.2GW solar power with advanced storage technology project to help realise Egypt's clean energy transition.
