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A group of Japanese and French banks have demonstrated their confidence in the long-term prospects for Egypt’s renewable energy (RE) sector by confirming support for one of its largest wind projects to reach financial close. The commitment is significant as several even larger projects are in the pipeline, while the wider economic outlook for Egypt is deteriorating.

London Stock Exchange-quoted Centamin, owner of the Sukari gold mine near Marsa Alam on Egypt's Red Sea Coast, has announced plans to increase the capacity of its 30MW solar PV plant.

A continued flow of renewable energy and green hydrogen deals, a planned upstream licensing round and LNG exports from two liquefaction terminals suggest business is operating as usual, but Egypt’s debt crisis and the extent of expected reforms mean investors should brace themselves for upheaval, writes John Hamilton.

China Energy Engineering Corporation expects to start implementing its green ammonia (GNH3) production facility in May, showing there is still momentum behind Cairo’s promotion of its green hydrogen (GH2) prospects, even if the current financial situation is dire.

In a move its principals said would create Africa’s largest renewable energy (RE) company, Amsterdam-headquartered Lekela Power BV on 20 March announced the completion of its acquisition by the Infinity Power Holding BV joint venture of Cairo-based Infinity Power and United Arab Emirates state-owned Masdar (Abu Dhabi Future Energy Company).

Amea Power executive chairman and founder Hussain Al-Nowais in late February provided a detailed insight into 11 of the Dubai-based developer’s projects under development in African markets.

While inflation and supply chain challenges have slowed the progress of many renewable projects, Amea Power has continued to expand its portfolio of solar and wind projects, with some 1.1GW of capacity operational or under construction, and a further 6GW under development. And it has big ambitions for green hydrogen and ammonia, the Dubai-based developer told Marc Howard.

Capricorn Energy announced on 15 February that it had formally ended plans to merge with Tel Aviv Stock Exchange (Tase)-listed NewMed Energy. It represented a victory for activist investment group Palliser Capital and other shareholders that had campaigned against the planned tie-up first mooted on 29 September.

Always a symbol of national pride, Aswan High Dam has become a greater priority for Egypt since Ethiopia started filling the Grand Ethiopian Renaissance Dam (Gerd). It is now also seen as a necessary protection against potential upstream trouble, as well as an important source of electricity. 

UK major BP has signed a memorandum of understanding (MoU) with the four main state institutions running green hydrogen (GH2) development in Egypt. The MoU, dating from December, brings the total number of potential projects under consideration by Cairo to at least 19.

In the teeth of a severe and worsening currency crisis, Cairo has doubled down on its approach to hydrocarbons sector development, launching a new upstream bidding round, signing a number of bilateral exploration agreements and announcing two significant gas finds. Its regional energy hub plan has also received a boost, writes John Hamilton.

Egypt has a good claim to have been the most dynamic of all African countries in 2022, but 2023 may be its year of reckoning. The currency crisis now ravaging the economy could bring President Abdel Fattah el-Sisi’s futuristic edifice of renewables, green hydrogen (GH2), new cities, real estate, electric trains, sea water desalination and social infrastructure crashing down unless he can keep on side a wide coalition. This includes the IMF and Gulf monarchies which are Egypt’s largest creditors, the military, whose economic prerogatives must now be curtailed, a hard-pressed population, and international business partners.

Sultan Al-Jaber’s appointment to preside over the end-year COP28 climate talks in Dubai brings a storied United Arab Emirates official to global prominence. His leadership in renewables developer Masdar and other UAE sustainable energy initiatives is welcome, but Al-Jaber’s powerful role as head of Abu Dhabi National Oil Company (Adnoc) has added to climate campaigners’ fears that big hydrocarbons producers will take the COP process even further off track, write Jon Marks and African Energy staff.

The International Monetary Fund’s $3bn extended fund facility (EFF) arrangement with Egypt, announced on 16 December, has left Cairo wanting, with a further $14bn needed from international and regional partners to help fill depleted coffers.

Egyptian oil and gas producers are foregoing an estimated $4.5bn a year of revenues by flaring gas rather than putting it to use – 50% more than the $3bn financing deal recently agreed between Cairo and the IMF. International companies are putting in place projects to deal with the problem, but a lot more needs to be done.