Egypt and Norway have signed Letters of Intent to finance the “Dandara” Solar Energy Project, which will supply clean electricity to the Egypt Aluminium (Egyptalum) complex in Nagaa Hammadi, Qena Governorate.
The signing ceremony was attended by Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat, Minister of Public Business Sector Eng. Mohamed Shimi, and Erik B. Husem, Norway’s Ambassador to Cairo.
The agreements were signed between Dandara Solar Energy Company, a subsidiary of Norwegian renewable energy company Scatec ASA, and three international lenders: the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).
Under the deal, Scatec will build and operate the solar plant for 25 years under a Build–Own–Operate model. The project will cover a large portion of the Egyptalum complex’s power needs and cut greenhouse gas emissions by up to 30%, making it the first large-scale industrial decarbonization project in the region. The initiative also supports Egyptalum’s competitiveness amid the EU’s Carbon Border Adjustment Mechanism (CBAM).
Al-Mashat said the project is part of Egypt’s Nexus of Water, Food and Energy (NWFE) program, which aims to add 10 GW of renewable capacity by 2028. She noted that the program has so far mobilized about $4 billion in concessional financing from international institutions to support private sector projects totaling 4.2 GW.
She added that the Dandara project not only boosts renewable generation but also supports Egypt’s industrial transition by providing a sustainable and cost-competitive energy source, strengthening export access to European markets.
Minister Shimi described the project as a “strategic leap” for Egypt’s aluminum industry, highlighting its role in lowering costs, improving production efficiency, and reducing carbon emissions. He added that the partnership with Scatec and global development banks reflects investor confidence in Egypt’s economy and reinforces its leadership in green industrial transformation.
The Letters of Intent were signed by Mohamed Amer, Chairman of Dandara Solar Energy S.A.E. and Executive Vice President of Scatec ASA; Mark Davis, EBRD Managing Director for SEMED; Guido Clary, Head of the EIB Regional Hub for North Africa and the Near East; and Abdourahmane Diaw, AfDB Country Manager.
