Under the MoU, Oman’s sovereign wealth fund will explore the possibility of obtaining up to 10% equity stake in the Egyptian project
ACWA Power, OIA sign $1.5bn MoU for Suez wind project in Egypt. (Credit: ACWA POWER)
Saudi Arabia’s ACWA Power has signed a memorandum of understanding (MoU) with Investment Authority (OIA) to explore the possibility of Oman’s sovereign wealth fund investing in 1.1GW Suez wind energy project in Egypt.
The power company signed the MoU with OIA at COP27, a conference on climate change held at Sharm El Sheikh, Egypt.
Under the terms of the MoU, OIA will explore the possibility of obtaining up to 10% equity stake in the Egyptian project, which is valued at around $1.5bn.
Egyptian engineering, construction, and infrastructure company Hassan Allam holds a 25% stake in the project, with ACWA Power owning the remaining equity.
Oman Investment Authority acting deputy president Mulham Basheer Al Jarf said: “We signed the MOU as it is in line with the Sultanate’s efforts to enhance joint investments with our brothers in the Kingdom of Saudi Arabia and the Arab Republic of Egypt in renewable energy projects, particularly wind power.
“OIA is also majorly focused on investments in the renewable energy sector to build a long-term sustainable future, whether through its companies in the same field or partnerships with regional and international investors such as Hassan Allam Holding and ACWA Power.”
In June this year, a consortium led by ACWA Power signed a project agreement to build the 1.1GW Egyptian wind energy project, which involves a $1.5bn investment.
The wind project is planned to be built in the Gulf of Suez and Gabal el Zeit area and is backed by a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC).
The Suez wind project is expected to provide electricity to 1,080,000 households in Egypt, eliminating the equivalent of 2.4 million tonnes of carbon dioxide emissions annually.
It will become the largest single contracted wind farm in the Middle East region, when it is completed in 2026, said the power company.
ACWA Power chairman Mohammad Abunayyan said: “Suez Wind Energy was already a remarkable project because of its ambition and scale.
“The signing of this key MOU demonstrates the confidence of the investor community in ACWA Power’s expertise and capability to deliver giga-scale projects.
“We value our continued partnership with Oman Investment Authority as well as Hassan Alam Holdings and believe their collaboration and contribution on this significant wind energy project will strongly enable the energy diversification goals of the nation.”