Egypt Secures $4bn Green Energy Push

Key Figures & Findings: Egypt is advancing its green industrial transformation with the signing of Letters of Intent for the “Dandara” Solar Energy Project. The initiative, led by Norway’s Scatec ASA and backed by EBRD, AfDB, and EIB, will supply clean power to the Egyptalum complex for 25 years. Expected to cut emissions by up to 30%, the project marks North Africa’s first large-scale industrial decarbonization effort, designed to align Egypt’s exports with Europe’s Carbon Border Adjustment Mechanism (CBAM).

Statistics & Insights: The Dandara project falls under Egypt’s “NWFE” platform, which has already mobilized around $4 billion in concessional finance for 4.2 GW of renewable projects since its launch in late 2022. Egypt targets 10 GW of new renewable capacity by 2028, while Egyptalum exports over 50% of its aluminum output, primarily to EU markets where CBAM compliance is critical.

Future Implications: If delivered on time, the Dandara plant could become a blueprint for industrial decarbonization in Africa. It would strengthen Egypt’s competitiveness in European markets post-CBAM, while anchoring investor confidence in large-scale green industrial projects. By 2028, its success could help attract further foreign financing and position Egypt as a regional leader in low-emission manufacturing.

Quick Take: Egypt ties solar power to exports — Dandara could reshape the aluminum industry’s carbon future.

Source: Zawya