The Dandara Solar Energy Project, developed by Norway’s Scatec ASA (OSL:SCATC) to power Egypt Aluminium (Egyptalum) with clean energy, is progressing with the signing of letters of intent regarding project financing.

Dandara Solar Energy Company, a subsidiary of Scatec, signed an agreement with the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB) and the European Investment Bank (EIB), witnessed by ministers Mohamed El-Shimy and Rania Al-Mashat at the Ministry of Public Business Sector.

In March, Scatec signed a 25-year, US dollar-denominated corporate power purchase agreement (PPA) for the 1.1-GW solar project, which includes a co-located energy storage system. The company will build and operate the facility for 25 years.

The project is expected to meet a substantial share of Egypt Aluminium’s electricity demand and cut greenhouse gas emissions by up to 30%, making it the region’s first large-scale industrial decarbonisation project. It will also strengthen the company’s competitiveness under the European Union’s Carbon Border Adjustment Mechanism (CBAM). Egypt Aluminium, the country’s largest aluminium producer and industrial power consumer, exports more than half of its output, mainly to the EU.

The project is part of the government’s Nexus of Water, Food and Energy (NWFE) programme, which is aimed at adding about 10 GW of renewables by 2028. Al-Mashat said that concessional financing secured by the private sector from development partners for the programme’s projects has reached around USD 4 billion, supporting the implementation of projects with a total capacity of 4.2 GW.