ACWA Power has signed a memorandum of understanding (MoU) with Oman Investment Authority (OIA) to explore bringing the sovereign wealth fund on as an investor in a 1100MW wind project in Egypt.
The MoU in relation to the Suez Wind Energy project was signed at COP27 being held at Sharm El Sheikh.
According to the terms of the MoU, OIA will assess the possibility of owning up to 10% of the project, which is valued at $1.5bn.
Hassan Allam Holdings, an Egyptian engineering, construction and infrastructure company, has a 25% stake in the project, with ACWA Power holding the remaining equity.
When completed in 2026, the project will be the largest single contracted wind farm in the Middle East region.
The MoU was signed by Mulham Al Jarf, Acting Deputy President for Investment, OIA, and Paddy Padmanathan, Vice-Chairman and CEO, ACWA Power, in the presence of Mohammad Abunayyan, Chairman of ACWA Power, and other senior executives.
Abunayyan said: “The signing of this key MOU demonstrates the confidence of the investor community in ACWA Power’s expertise and capability to deliver giga scale projects.
“As we continue to build upon our renewables portfolio in Egypt, we value our continued partnership with Oman Investment Authority as well as Hassan Allam Holdings and believe their collaboration and contribution on this significant wind energy project will strongly enable the energy diversification goals of the nation.”
ACWA Power earlier signed a joint development agreement with OQ, an OIA-owned entity, in May 2022.
Along with Air Products, the agreement involves the development of a multibillion-dollar green hydrogen project in Oman.