ACWA Power: $2.5 billion investments for the first phase of the Upper Egypt station

The Saudi company ACWA Power is discussing the implementation stages of the wind power station project in West Sohag (southern Egypt), with the Egyptian Ministry of Electricity, to produce 10 gigawatts at a total investment cost of about 10 billion dollars.

West Sohag wind power plant project

A company official said that the wind power station project in West Sohag is gigantic and will be implemented in several stages, noting that the Egyptian government has allocated the land.

The official, who declined to publish his name, added that the first phase of the project may be around 25% of the total targeted capacity at an investment cost of $2.5 billion, and technical studies related to wind are currently being conducted, followed by financial closing studies for financing the project.

He said, "We aim to communicate with international financial institutions to provide funds for the project".

Investments in Egypt

Saudi ACWA Power's investments in Egypt amount to about two billion dollars, distributed between solar and wind power plants, and it intends to pump new investments into water desalination projects.

The official said, "We are interested in water desalination projects, and ACWA Power is interested in rehabilitation studies for these stations that the Egyptian government intends to launch in the future, and as soon as there is any opportunity in this regard, we will apply for them in addition to green hydrogen."

Economic Zone

He explained that the company signed a memorandum of understanding in this regard with the Suez Canal Economic Zone, the Sovereign Fund and the Ministry of Electricity. A framework agreement was signed this December and studies related to the project began.

He added that ACWA Power aims to produce 500,000 tons per year of green ammonia as a first phase, reaching one million tons in the second phase of the project, and the company will begin studies on the project.

He said, "We signed a memorandum of understanding with the Economic Zone, and soon we will sign the framework agreement with the Sovereign Fund of Egypt and the Ministry of Electricity, and then we will begin work on studies of the project."

The investment cost of the project amounts to $4 billion, with the production capacity reaching two million tons annually with subsequent development and expansions.