The Egyptian Electricity Transmission Company (EETC) signed on 15 May a Memorandum of Understanding with the Norwegian Scatec ASA. Specialised in renewable energy systems, Scatec ASA is a leading company in the field of green energy solutions. The MoU launches studies concerning a project to connect Egypt’s electricity grid to Europe, so that Egypt could at a later stage export renewable energy to Europe via Italy.
Present at the signing ceremony were Prime Minister Mostafa Madbouly; Minister of Electricity and Renewable Energy Mohamed Shaker El-Markabi; and Ambassador of Norway to Cairo, Hilde Klemetsdal.
Signing on behalf of the Egyptian side was Sabah Mashaly, CEO and Managing Director of EETC; and representing Scatec ASA was its CEO Terrier Belskog.
According to the Minister of Electricity, the MoU signed comes within the framework of upholding the cooperation between Egypt and the EU in the field of power in general and renewable energy in specific.
Ms Mashaly explained that the MoU involves research work and studies as a prelude to the implementation of the project to export renewable Energy to Europe via Italy, using a sea-link line with a capacity of no less than 3GWs.
The MoU includes steps and procedures for the project implementation, Ms Mashaly pointed out. These include that Scatec ASA obtains the approval of the Italian network operator, and appoint an international consultant specialised in electric interconnection projects similar to the one subject to the MoU. Part of the scope of the consultant’s work, Ms Mashaly said, is to identify energy sources that will be used for renewable energy to Europe. Scatec ASA will also undertake all the necessary infrastructure works, and will determine the route of sea-link cable required for the project, as well as the best method for installing it. All this, Ms Mashaly pointed out, should comply with the performance standards of environmental and social sustainability.
After the research and studies are completed and EETC grants its approval, Ms Mashaly said, the discussions and agreement on the project implementation details begin.
Based on the results of the project studies, as well as the reports by the network operators in Egypt and Italy, Mr Belskog, Scatec ASA CEO said, his company will lead the activities related with the project development, and it will be primarily responsible for getting project financing at competitive prices from international financing institutions with long term repayment periods. This, he pointed out, will be coordinated in agreement with both the Egyptian and Italian sides.
President Sisi received today, Mr Belskog, and discussed with him Scatec ASA growing investment in Egypt in new and renewable energy projects, as well as hydrogen and green fuels. Egypt is already implementing a green hydrogen production project with Scatec ASA in Ain Sukhna, putting Egypt as the lead country in Africa to produce green hydrogen. Also, with investments worth USD6 billion, Scatec ASA is carrying out a project to produce green ammonia in the Suez Canal Economic Zone, placing the Suez Canal region as a hub for green maritime transport. Egypt is also carrying out with Scatec a multi-phase large wind energy project with investments of up to USD5.6 billion. In Damietta, Scatec ASA is implementing an USD870 million project to produce green ammonia.
On 14 May, Egypt signed a joint development agreement with Norway’s Scatec to establish the country’s first green methanol production project in Damietta Port with investments worth around USD450 million.
15 May 2023
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