meed-logo

line1 line2 line3
SIGN IN / REGISTER

Scatec in talks for Nagaa Hammadi solar project

22 January 2024

Egypt's Public Business Sector Ministry and Norwegian renewable power producer Scatec are exploring the development of a solar power plant to supply clean energy for the operation of the Nagaa Hammadi aluminium complex in Egypt.

According to a cabinet statement, Public Business Sector Minister Mahmoud Esmat and representatives from Scatec met last week to discuss a proposal to establish a solar plant with a battery to provide clean electricity to operate the aluminium factory.

The discussions covered the economic feasibility of the project, the cost of production, selling prices, and the provision of the land necessary to build the solar plant.

To be implemented in cooperation with Egypt's Electricity & Renewable Energy Ministry, the solar park is planned to be constructed in two phases, each with the capacity to produce 500 megawatt-hours (MWh) of clean power annually.

The project's first phase is expected to be completed within 18 months from the date of signing, and the second phase is expected to be completed within 24 months.

A plan to install a 300MW ground-mounded solar farm for the Nagaa Hammadi aluminum smelter plant was first announced in 2021.

Nagaa Hammadi is located in Upper Egypt, on the west bank of the Nile River in the Qena governorate.

Egypt focus

MEED reported in May last year that Scatec is focusing its resources on Egypt following its withdrawal from two solar projects in Iraq and a planned green hydrogen project in Oman.

The Norwegian firm is looking to co-develop green ammonia and green methanol plants and a long-distance interconnector in Egypt that will require investments of at least $13bn in the coming years.  

The same month, the Egyptian cabinet approved a memorandum of understanding signed by Scatec and the Egyptian Electricity Transmission Company to explore the possibility of connecting the Egyptian electricity grid to Europe through Italy.

The interconnector is expected to carry 3GW of electricity daily between Egypt and Europe. It supports Egypt's plan to become an energy trading hub between the Middle East, Africa and Europe.

There are also plans for two joint green ammonia production projects in the Suez Canal Economic Zone and Damietta, which will reportedly require investments of $6bn and $870m, respectively.

In May last year, Egypt’s Alexandria National Refining & Petrochemicals Company and Scatec signed a $450m deal to build the country's first green methanol production project in Damietta Port.

The facility will be developed in Damietta Port, on the eastern edge of the Nile Delta, and will produce 40,000 tonnes of green methanol a year, which could be increased to 200,000 tonnes.

In July last year, Scatec signed an agreement with Egytp's New & Renewable Energy Authority to secure land for a planned 5GW wind farm in western Sohag.

The project, which is expected to require up to $5.6bn in investment, was initially discussed and reviewed by the Egyptian president and Scatec CEO Terje Pilksog in May 2023.

Renewable ammonia

Scatec is co-developing the Egypt Green hydrogen electrolyser project with Abu Dhabi-listed Fertiglobe, the Sovereign Fund of Egypt and local contractor Orascom Construction.

In November, Fertiglobe completed the first shipment of what could be the world's first internationally certified renewable ammonia from its plant in Egypt to India. It will be used to produce near-zero-emissions synthetic soda ash – a key ingredient in laundry powder – for Unilever.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11452181/main1321.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • TotalEnergies signs $11bn Morocco green hydrogen deal

    29 October 2024

    France's TotalEnergies has signed an agreement to develop an $11bn project to produce hydrogen and green ammonia in Morocco.

    It was previously reported that the planned integrated facility will be located in Guelmim-Oued Noun in southern Morocco.

    The deal is one of 22 that were signed during French President Emmanuel Macron's visit to the North African state on 28 October.

    TotalEnergies chairman and CEO Patrick Pouyanne signed the agreement for the local production of green hydrogen and ammonia in the presence of Morocco's King Mohammed VI and Macron, according to local media reports

    The counterparty includes Morocco's Minister of Energy, Leila Benali, Minister of Economy and Finance, Nadia Fattah, Minister of the Interior, Abdelouafi Laftit, and the Minister Delegate in charge of Investment, Karim Zidane.

    It is understood that the project will require the development of 10GW of solar and wind energy and a land area of 187,000 hectares.

    It was reported that Morocco's Unified Regional Investment Commission (CRUI) approved the project’s launch in November 2022.

    The other agreements signed during Macron's visit to Morocco cover financial cooperation in the rail, forestry, aviation, logistics and energy sectors, with a particular focus on decarbonisaton and energy transition.

    TotalEnergies has been exploring green hydrogen-related and other related projects across the Middle East and North Africa region.

    In August, the Courbevoie- headquartered firm and Abu Dhabi Future Energy Company (Masdar), signed an agreement to assess the viability of developing a commercial green hydrogen to methanol to sustainable aviation fuel (saf) project.

    It is also among the early investors in UK-based Xlinks First, which aims to deliver the $18bn Morocco-UK power interconnector project.

    TotalEnergies acquired a minority stake in the company following an investment of $25.4m, which was announced in November last year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12811486/main.gif
    Jennifer Aguinaldo
  • Tadweer and Japanese firms to build recycling plant

    29 October 2024

    Abu Dhabi-headquartered Tadweer Group is partnering with Japanese chemicals companies to build a plastic chemical recycling facility in Abu Dhabi.

    The investment is expected to reach up to ¥40bn ($261.5m), with the facility set to be operational by 2026 or 2027.

    The new facility will be capable of recycling a wide variety of plastics, including materials used in polyethylene terephthalate (PET) bottles and packaging containers, said Tadweer.

    It will also introduce advanced technology that can revert plastic waste to raw materials.

    Ali Al-Dhaheri, Tadweer Group managing director and CEO, said: "We are considering two or three Japanese companies with the necessary technological capabilities and hope to select partner or partners for collaboration within the next three to six months."
     
    Al-Dhaheri added that the final investment will depend on the facility's processing capacity, and will likely range between $100m and $300m.

    He also mentioned the possibility of a joint investment with Japanese companies, stating, “while we are reviewing technologies from other countries, it is Japan that best meets our requirements”.

    Japan is recognised for its high PET bottle recycling rate and has made significant strides in the recycling of other plastics.

    Tadweer added that it has existing partnerships with Marubeni Corporation and other Japanese companies, mainly in the power generation sector, and now plans to expand its collaboration with Japanese firms that possess advanced technology and expertise.

    Related read: Dhafra waste-to-energy work to start

    Photo credit: Pixabay

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12811435/main.jpg
    Jennifer Aguinaldo
  • QatarEnergy to acquire 50% in Iraq 1GW solar project

    29 October 2024

    QatarEnergy has signed an agreement with France's Total Energies to acquire a 50% interest in the 1,000MW solar photovoltaic (PV) project as part of the $27bn gas growth integrated project (GGIP) in Iraq.

    Total Energies will retain the remaining 50% of the project. The shared ownership is subject to regulatory approvals. 

    Located in Artawi – also known as Ratawi – in southern Iraq, the solar PV project is expected to start construction soon, MEED reported on 25 October.

    In a statement, QatarEnergy said: "The project will consist of 2 million high-efficiency bifacial solar panels mounted on single-axis trackers and will, upon its completion, be capable of supplying up to 1.25 gigawatts (peak) of solar-generated power to the electricity grid in the Basra region of Iraq.

    "The project will be developed in phases that will come online between 2025 and 2027 and will have the capacity to provide electricity to about 350,000 homes in the Basra region."

    TotalEnergies Renewables awarded China Energy Engineering International Group the engineering, procurement and construction contract for the project in August.

    China Energy Engineering Tianjin Electric Power Construction, International Group and Southwest Institute will deliver the project.

    It was reported at the time that construction work is expected to start later this year, and completion is expected in early 2027.

    The project includes the design, procurement, construction and commissioning of the PV power station site and 132-kilovolt booster station, with a capacity of 1,000MW.

    In addition to the solar PV independent power project (IPP), the three main projects that make up the $27bn GGIP project include:

    • A treatment facility for associated natural gas from five southern oil fields – West Qurna 2, Majnoon, Artawi, Tuba and Luhais
    • The $4bn common seawater supply project 
    • Development of the Artawi gas field 

    QatarEnergy announced in June 2023 that it had entered into a consortium to implement the GGIP project in Iraq, with a 25% participating interest, together with TotalEnergies (45%) and Iraq’s Basra Oil Company (30%).

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12811027/main.jpg
    Jennifer Aguinaldo
  • Kuwait tenders main Saad Al-Abdullah substation contract

    28 October 2024

    Kuwait's Public Authority for Housing Welfare (PAHW) has tendered a contract to construct a main substation project at South Saad Al-Abdullah Residential City.

    The selected bidder will supply, install, implement and maintain the planned 11/132/400-kilovolt (kV) substation 

    The PAHW expects to receive bids for the contract, for which it set a bid bond of KD500,000 ($1.6m), on 28 October.

    Located in Kuwait's Al-Jahra Governorate, the South Saad Al-Abdullah housing project covers an area of 64 square kilometres and consists of five residential areas with 24,508 housing units.

    The PAHW recently awarded two substation contracts for another city, which is being developed in Al-Jahra.

    The Kuwait branch of Saudi Arabia's National Contracting Company (NCC) won a contract to build 10 132/11-kV substations in Sabah Al-Ahmad City, MEED reported earlier this month.

    The substations will cater to neighbourhoods N5, N6, N8 and N10 in South Sabah Al-Ahmed City. The 24-month contract is valued at SR534m ($142m).

    Al-Ahleia Switchboard Company won the other tender for the supply, installation, implementation and maintenance of 10 11/132kV main transformer stations in Sabah Al-Ahmed's N5, N7 and N9 neighbourhoods.

    Located 80 kilometres south of Kuwait City, the South Sabah Al-Ahmad residential development will be home to an estimated 280,000 people when complete.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12804333/main2244.gif
    Jennifer Aguinaldo
  • Emsteel and Masdar inaugurate pilot hydrogen plant

    28 October 2024

    Register for MEED's 14-day trial access 

    Emsteel and Abu Dhabi Future Energy Company (Masdar) have inaugurated a pilot green hydrogen plant at Emsteel's manufacturing complex in Mussafah, Abu Dhabi.

    The pilot project's electrolyser capacity and equipment supplier have not yet been disclosed.

    MEED understands the plant utilises solar power from the grid to produce hydrogen on site.  

    The project sets the stage for Emsteel to use green or renewable hydrogen, instead of natural gas, to extract iron from iron ore.

    Emsteel Group CEO, Saeed Ghumran Al-Remeithi, said the partnership with Masdar is part of a commitment to "accelerate decarbonising green steel production in the UAE and the wider Middle East and North Africa (Mena) region".

    During the launch event for the plant, Al-Remeithi said the project marks a significant step towards making the UAE "a world green hydrogen leader" and Emsteel "a hub for green steel".

    In a press briefing on 28 October, Saeed Al-Ghafri, CEO of Emirates Steel, said the plan is to scale up the pilot green hydrogen facility to enable it to meet demand for green steel both locally and from abroad.

    "We are decarbonising across verticals through carbon capture and green hydrogen … to serve the UAE market and eventually to go global," he said.

    Al-Ghafri declined to confirm whether the plan entails developing a major integrated facility with Masdar in one of two planned green hydrogen oases in Abu Dhabi, or offtaking the hydrogen produced at one of the future facilities planned in the emirate.

    Previously known as Emirates Steel Arkan, the steel and cement producer rebranded as Emsteel in September as part of a broader strategy to accelerate operational transformation and expand its global footprint.

    Headquartered in Abu Dhabi, Emsteel operates 16 plants with an annual production capacity of 3.5 million tonnes a year (t/y) of steel and 4.6 million t/y of cement. The company exports its products to over 70 markets, which account for 30% of its sales.

    The rebranding followed the merger of Emirates Steel and Arkan Building Materials in late 2021, establishing the UAE’s largest steel and construction materials company, valued at $3.53bn.

    Emsteel, which contributes 11% of Abu Dhabi’s manufacturing output, operates through two main divisions: Emirates Steel and Emirates Cement.

    The cement division includes Al-Ain Cement Factory, Emirates Blocks Factories, Anabeeb and Arkan Bags.

    Emsteel has a focus on low-carbon products, with the group committing to reduce carbon emissions as part of the UAE’s Net Zero by 2050 strategic initiative, with 80% of its operations powered by clean energy.

    The company is also a key player in the UAE’s industrial strategy, Operation 300bn, holding a 60% share of the UAE’s steel market.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12803934/main.jpg
    Jennifer Aguinaldo