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Saudi Alhokair subsidiary FAS Energy to build $450 mn solar plant in Egypt

Posted: June 25, 2022 at 9:49 am   /   by   /   comments (0)

Alhokair Group subsidiary FAS Energy is planning to invest some USD 450 mn (SAR 1.7 bn) to construct a 500 MW solar plant in Egypt in partnership with the Electricity Ministry and the Egyptian Electricity Transmission Company (EETC), FAS Energy CEO Sabri Asfour told Enterprise. The firm is in final negotiations on the location of the plant, and hopes to sign the final contracts before the end of July, he said.

The company plans to start construction in August, with hopes of completing as much of the project as possible ahead of the COP27 summit in November, Asfour said, adding that the project should be completed by November 2023.

How will the plant be financed? The company has already secured a syndicated loan covering 80% (USD 360 mn) of the project’s costs from a group of Saudi banks, with the remaining 20% (USD 90 mn) set to be self-funded, Asfour said.

FAS Energy also has plans for green hydrogen: The energy player plans to invest in Egypt’s green hydrogen industry, and will be announcing details for a project sometime after the upcoming Eid vacation in July, Asfour added.

FAS Energy has been active in Egypt for a while: The Alhokair subsidiary has a 50 MW solar power plant at the Benban complex, and plans to set up a waste-to-energy facility in 10th of Ramadan City.