Egypt and Norway: A green partnership for the future

Egypt and Norway are enhancing their business relations, marked by significant investments and collaborative projects. Recently, Norwegian ambassador Hilde Klemetsdal announced that Norwegian companies are expanding their investments in Egypt, focusing on renewable energy and green economy projects.

1. Renewable energy initiatives: Norwegian energy company Scatec is set to construct a $5 billion wind power plant in West Sohag, projected to produce 5 GWs annually. This plant will be among the largest in Africa, supporting Egypt’s goal of doubling renewable energy contributions to its energy mix. It’s expected to create 8,000 jobs during construction and 300 permanent positions thereafter.

2. Green hydrogen production: During the Egypt-EU investment conference, a partnership involving Orascom Construction, Fertiglobe, and Scatec was established to develop a green hydrogen production facility. This facility aims to produce 13,000 tons of hydrogen annually, bolstering Egypt’s renewable energy sector.

3. Electricity grid connection: An MoU was approved to explore connecting Egypt’s electricity grid to Europe through Italy. This project, in collaboration with the Norwegian company Scatec, aims to establish a 3 GW connection, enhancing Egypt’s energy export capabilities.

4. Green methanol production: Egypt and Norway signed an agreement to develop a $450 million green methanol production project, furthering Egypt's green economy initiatives and increasing exports.

5. Solar energy station: Scatec is collaborating with Egypt to develop a solar energy station that will provide electricity to the Naga Hammadi aluminum complex, aligning with Egypt's strategy to expand renewable energy use and ensure sustainability.

These projects not only contribute to Egypt's renewable energy goals but also align with its Vision 2030 plan to generate 42% of its electricity from renewables by 2035. The collaboration with Norwegian companies supports Egypt’s efforts to localize modern technology, increase employment rates, and enhance the export potential.

Minister of Public Business Sector Mohamed Shimy emphasized that these investments are crucial for developing local industries and achieving economic development. The Egyptian government is committed to providing facilities and incentives to attract more foreign investments, positioning Egypt as a gateway to the Middle East and African markets.