
By Sama Marwan,
Egypt Aluminum is nearing the finalization of a contract to establish one of the company’s most significant solar power plants. This project is expected to provide approximately 30% of its traditional energy needs, convert it into clean energy, and contribute to doubling exports. The initiative aims to address export challenges by ensuring the products are manufactured using natural and non-polluting energy sources.
The Budget and Planning Committee of the Egyptian Parliament has approved Egypt Aluminum’s proposal to sign the agreement with Norway’s Scatec company. All contract details, including arbitration clauses, have been agreed upon. Once the final contract is signed, the project is expected to be launched within 18 months. Notably, Egypt Aluminum, led by Dr. Mahmoud Agour, CEO and Managing Director, will not bear any construction, operational, or maintenance costs. Instead, the company will purchase energy from the solar plant as an alternative to traditional energy, enabling eight hours of daily operations using clean energy alongside traditional power sources.

Egypt Aluminum currently consumes approximately EGP 7.5 billion worth of conventional electricity annually.
According to sources, Egypt Aluminum aims to accelerate the implementation of its first solar power plant in collaboration with Norway’s global Scatec company. This shift to clean energy will simplify export processes to European Union countries. Concurrently, the company is studying plans to establish new factories and expand the production capacity of existing ones, potentially adding $500 million annually to aluminum product exports.
Recently, applications were reviewed for the establishment of a new aluminum smelter with a capacity of 600,000 tons and an expansion line with a capacity of 200,000 tons.
The Ministry of Public Enterprise’s development plan for Egypt Aluminum includes total investments of $250 million over five years. This plan focuses on preserving the company’s assets, rehabilitating production lines, and increasing production capacity while adhering to carbon border adjustment mechanism (CBAM) regulations. This compliance will ensure the company retains access to international markets in the coming years.
During the last fiscal year, Egypt Aluminum achieved a net profit of EGP 9.32 billion (July 2023–June 2024), compared to EGP 3.69 billion in the previous fiscal year. The company aims for exports exceeding $500 million by the end of the current fiscal year.
Revenues for the last fiscal year rose to EGP 32.81 billion from EGP 22.04 billion in the preceding year.
Efforts by Egypt Aluminum have culminated in the selection of Norway’s Scatec to implement the project. A draft Power Purchase Agreement (PPA) has been prepared and preliminarily signed between Egypt Aluminum and Scatec. Under this agreement, Scatec will finance the construction of a solar power plant with a capacity of 1 GWh in two phases, along with battery storage of 200 MW, to supply clean electricity to Egypt Aluminum.