Cabinet approves Obelisk Solar PV’s 1,000-MW project as strategic investment

Updated 12/4/2024 3:09:00 PM

Arab Finance: The Egyptian cabinet has approved granting Obelisk Solar PV a golden license, recognizing it as a strategic project under Investment Law No. 72 of 2017, as per a statement.

The project involves establishing a 1,000-megawatt solar power station in Naga Hammadi, Qena, on a 16.3-square-kilometer plot of land under the usufruct system. It includes a 200-megawatt-hour energy storage battery system.

The investment cost is estimated at $600 million, with commercial operations slated to begin in two phases: the first 500-MW phase in February 2026, and the second in August 2026.

This project will generate 5,100 jobs, including 100 permanent positions for engineers, technicians, and workers.

It also aims to promote environmental sustainability, reduce thermal and gas emissions, and contribute to climate improvement.

The cabinet also approved FutureFert for Fertilizer and Chemical Industries as a strategic project, granting it a golden license.

The company will establish a facility for producing potash, phosphate fertilizers, inorganic acids, and compound fertilizers in the special economic zone of the northwest Gulf of Suez.

Covering 127,000 square meters, the project will require an investment of $40 million, with the first phase of operations to commence in January 2026, creating 300 direct jobs.

FutureFert for Fertilizer plans to export at least 70% of its production, leveraging environmentally friendly practices by recycling secondary manufacturing products, and minimizing fossil fuel use through heat-powered generators.

The company’s existing project in the same zone, operational since 2018, produces 50,000 tons of compound fertilizer annually, with a 99% export rate, generating over $20 million in 2023.

The cabinet also thumbed up for an energy purchase agreement between the Egyptian Electricity Transmission Company (EETC) and Scatec for a 900 MW wind energy project.

Additionally, land allocations were approved for Damietta Green Ammonia Production Company to generate wind energy in the north of the Gulf of Suez and solar energy west of the Nile, supporting its green ammonia project.