Sumitomo announces participation onshore wind IPP project
Published by Jessica Casey,
Editor
Energy Global,
Sumitomo Corporation has acquired an equity stake in AMUNET WIND POWER COMPANY S.A.E. and signed a loan agreement with a group of banks including Japan Bank for International Cooperation (JBIC) in relation to its onshore wind independent power producer (IPP) project in Egypt, which Sumitomo Corporation has been developing in partnership with AMEA Power, a renewable energy developer headquartered in UAE.
The project involves the construction, ownership, and operation of onshore wind farm that can generate approximately 500 MW of electricity, which amounts to the annual power consumption of approximately 1 million households, in Ras Ghareb in the Red Sea Governorate along the Gulf of Suez, situated some 240 km southeast of Cairo, the capital city of Egypt. When completed, the project is slated to sell electricity to Egypt’s state-owned Egyptian Electricity Transmission Company over approximately 25 years. The construction is scheduled to take approximately 2.5 years until 2025, and the completed facility is expected to become one of the largest onshore wind farms in Egypt. Sumitomo Corporation will engage in the development, construction and operation of the wind farm by leveraging its expertise acquired through its track record of overseas onshore wind farm projects in the US, the Republic of South Africa, the People's Republic of China, and other locations.
The project is to be co-financed by JBIC, International Finance Corporation (IFC), Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Standard Chartered Bank, and others through a project financing scheme, for which an agreement-signing ceremony took place locally on 30 November 2022. The portion financed by private financial institutions will be covered by Overseas Untied Loan Insurance provided by Nippon Export and Investment Insurance (NEXI).
The Egyptian government upholds the target of increasing the proportion of renewable energy in its national electricity mix to 35% by 2030, and further to 42% by 2035. With the aim of contributing to achieving a sustainable society. Sumitomo Corporation is striving to develop and deploy carbon-free energy such as hydrogen, and has set a medium-term goal to double the supply of renewable energy to 3 GW or more by 2030 on a net ownership generation capacity basis. Through the Project, which is Sumitomo Corporation’s first large scale wind power generation project in the Middle East region, Sumitomo Corporation aims to contribute to Egypt’s energy transition as well as to the development of its local communities and economy.
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Read the article online at: https://www.energyglobal.com/wind/05122022/sumitomo-announces-participation-onshore-wind-ipp-project/
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