The loan is part of Red Sea Wind Energy’s $680m financial closing for the development, construction and operation of a new 500MW onshore wind farm in the Gulf of Suez area, Egypt
Big wind turbines in the desert against mountains, Egypt. (Credit: European Bank for Reconstruction and Development)
Red Sea Wind Energy has secured a senior secured loan of up to $100m from the European Bank for Reconstruction and Development (EBRD) to support the construction of a wind farm in Egypt.
The loan is part of the company’s $680m financial closing for the development, construction and operation of a new 500MW onshore wind farm in the Gulf of Suez area, Egypt.
The loan includes a part of up to $50m from the EBRD and a portion of up to $50m from the Green Climate Fund (GCF) in favour of Red Sea Wind Energy.
In addition, the project is being co-financed by the Japan Bank for International Cooperation and other private commercial banks, insured by Nippon Export and Investment Insurance.
EBRD sustainable infrastructure group managing director Nandita Parshad said: “We are very proud to support this significant wind farm in the Gulf of Suez, the first for us as lead development partner for the energy pillar of the country’s ground-breaking NWFE initiative.
“This is a milestone project that will advance a fundamental shift away from Egypt’s reliance on hydrocarbons, create new green business and employment opportunities, reduce pollution and avoid CO2 emissions.”
Red Sea Wind Energy is a joint-stock company owned by a consortium of sponsors, including Engie, Orascom Construction, Toyota Tsusho Corporation and Eurus Energy.
The company is developing the Gulf of Suez wind farm under the Energy Pillar of Egypt’s Country Platform for NWFE programme, which the Government of Egypt launched at COP27.
Gulf of Suez is the third private wind farm in Egypt and is expected to become the largest in Africa.
The renewable energy project will help reduce around one million tonnes of CO2 emissions per annum, which is equivalent to eliminating about 217,000 cars off the road.
The energy generated will be sold to the Egyptian Electricity Transmission Company (EETC) over a period of 25 years.
GCF private sector facility director Kavita Sinha said: “GCF is proud to support this initiative, which will be the first wind farm under the programme and the largest in Africa.
“It is a strong example of the importance of innovative financing models, as Egypt rapidly scales up the deployment of private sector capital to facilitate the adoption of clean technologies at scale.”