Mazghouny & Co, has successfully advised Scatec, a global green energy company, on a 25-year corporate Power Purchase Agreement (PPA) with EgyptAlum. This groundbreaking renewable energy project in Egypt involves a 1 GW solar PV plant with a 100 MW/200MWh Battery Energy Storage System (BESS), backed by a sovereign guarantee from the Egyptian government. The total estimated project cost is approximately USD 650 million.
In addition to its equity investment, Scatec will serve as the EPC contractor, asset manager, and operations and maintenance (O&M) provider for the project, solidifying its position as a key player in Egypt’s renewable energy sector.
Transforming Egypt’s industrial energy landscape
EgyptAlum, the country’s largest aluminium producer and its biggest industrial electricity consumer, exports around 60% of its production to Europe. This project is Egypt’s first utility-scale PPA with an industrial offtaker, aligning with EgyptAlum’s goals to decarbonise aluminum production and comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM) requirements set for 2026.
The signing ceremony on 13 March 2025 was attended by His Excellency the Prime Minister of Egypt, alongside the Minister of Public Business Sector, the Minister of Electricity and Renewable Energy, and the Minister of Planning, Economic Development, and International Cooperation. The event coincided with the launch of the Second Progress Report of the “NWFE” programme, the country platform which promotes sustainable development across water, food, energy, and transport sectors.
Legal expertise driving renewable energy projects in Egypt
Our dedicated team at Mazghouny & Co provided comprehensive legal support to Scatec, including:
- Engaging in discussions with government stakeholders, leading to the enactment of legislation authorising the Egyptian Ministry of Finance to issue a sovereign guarantee for EgyptAlum’s obligations under the PPA.
- Assisting in the structuring and establishment of the project company.
- Previously advising on the cooperation agreement between Scatec and EgyptAlum, which laid the foundation for this milestone project.
This collaboration underscores our team’s expertise in navigating Egypt’s energy landscape and our commitment to supporting innovative energy projects that drive sustainable industrial practices in Egypt.
For more information on how Mazghouny & Co can assist with your energy and infrastructure projects in Egypt, contact our team at contact@mazghouny.com.
