The Minister of Business Sector discusses with the Norwegian Minister of International Development the strengthening of economic cooperation
Engineer Mohamed Shimi, Minister of the Public Business Sector, discussed, during his meeting with Osmund Okrost, Minister of International Development of the Kingdom of Norway, ways to strengthen relations between the two countries and open broader horizons for economic and industrial cooperation, especially in the areas of green transformation and renewable energy.
Shimi stressed the depth and distinction of bilateral relations between the two countries, and the continuous development they are witnessing in light of the common interest in advancing cooperation paths towards further development. Economic partnerships, especially in renewable energy projects.
He pointed out that Egypt places attracting foreign investments at the top of its priorities, and provides a supportive and encouraging climate for international companies wishing to invest in the Egyptian market.
The meeting, at the Ministry’s headquarters in the Administrative Capital, was attended by Ambassador Erik Husem, Ambassador of the Kingdom of Norway in Cairo, and Mohamed Amer, Vice President. Executive Director of the Norwegian company SCATEC.
The meeting witnessed a detailed review of the latest developments related to the joint project between the Misr Aluminum Company, one of the Holding Companies for Metallurgical Industries affiliated with the Ministry of Public Enterprise Sector, and the Norwegian company SCATEC, the world leader in the field of renewable energy, to establish a solar energy station to feed the aluminum complex in Nag Hammadi with clean energy, through the company Dendera Solar Energy, affiliated with SCATEC.
This project comes in light of the power purchase agreement recently signed between the two sides, and is considered a pivotal step within the country’s strategy to expand the use of renewable energy sources in the industrial sector. The anticipated project constitutes a pioneering model of partnership between the state, the private sector and international investors, as Scatec ASA, through its subsidiary in Egypt, will undertake the construction and operation of the station for 25 years.
The project is scheduled to contribute to providing a large proportion of the Egypt Aluminum Complex’s electricity needs, thus achieving a reduction in greenhouse gas emissions by up to 30%, making it The first large-scale industrial decarbonisation project in the region. This would enhance the competitiveness of Egypt Aluminum Company, especially in light of the implementation of the European border carbon adjustment mechanism, and would also support Egypt’s position as a pioneering country in the green industrial transformation.
He said that this project represents a qualitative leap for the aluminum industry in Egypt, and reflects the government’s commitment to consolidating the concepts of environmental sustainability and improving the efficiency of resource use, explaining that the project aims to reduce costs. The operation of the aluminum complex, and raising its production efficiency, in a way that enhances the competitiveness of the Egyptian product in global markets, especially since Misr Aluminum exports more than 50% of its production, and most of these exports are directed to European Union countries.
During the meeting, future cooperation opportunities in a number of priority areas were also discussed, and a group of promising investment opportunities presented by a number of companies were reviewed. Companies affiliated with the Ministry of Public Business Sector. The Minister expressed his aspiration to deepen cooperation with the Norwegian side.
Engineer Shimi stressed that the Ministry of Public Business Sector strongly supports effective partnerships between the state, the private sector and international investors, based on a firm conviction of the importance of these partnerships in achieving sustainable development and enhancing Egypt’s role as a regional center for industry and renewable energy in the Middle East and Africa.
It is worth noting that the project The solar energy station being implemented between Misr Aluminum Company and SCATEC is receiving the attention and support of major international financial institutions, as letters of intent to finance the project were recently signed between Dandara Company (the project company) with the European Bank for Reconstruction and Development, the African Development Bank, and the European Investment Bank.
This reflects the increasing confidence enjoyed by the market. Egypt as a promising investment destination, and the keenness of international institutions to support projects with sustainable economic and environmental returns.
