ACWA Power and HAU Energy Achieve Financial Close for 1.1GW Suez Wind Farm

 

• The project secured USD 703.6 million in financing from a consortium of financial institutions
• Suez Wind Farm will play an important role in supporting the Egyptian government to increase renewable energy share in its electricity generation mix to 42% by 2040

Cairo, Egypt; 31 December 2024: ACWA Power, the world’s largest private water desalination company, leader in energy transition and first mover into green hydrogen, together with consortium partner HAU Energy, a subsidiary of Hassan Allam Utilities, have achieved the financial close for the 1.1GW Suez Wind Farm in Egypt, the largest single-contracted wind farm in the Middle East. The project will play an important role in supporting the Egyptian government in achieving its target of increasing the share of renewable energy in its electricity generation mix to 42% by 2040.

The project secured a USD 703.6 million senior debt facility from a consortium of banks including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AFDB), the British International Investment Corporation, the German Investment Corporation, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP). The senior debt funded by EBRD included a B loan structure provided by Standard Chartered Bank and Arab Bank.

Located in the Gulf of Suez and the Gabal El-Zeit area, the Suez Wind Farm has an overall investment value of USD 1.2 billion. ACWA Power holds a 70% stake in the project, with HAU Energy owning the remaining 30%.

The project will contribute to eliminating 1.1 million tonnes of carbon dioxide annually and will be implemented in two phases with a capacity of 550MW for each phase, with a total of 138 turbines. The capacity of each turbine will reach about 8MW and a height of about 210 metres per turbine. The project is expected to achieve full commercial operations by Q2 2027.

Commenting on the announcement, Marco Arcelli, Chief Executive Officer at ACWA Power, said: “The financial close for the Suez Wind Farm marks a significant milestone in Egypt’s ambitious renewable energy journey and reinforces ACWA Power’s commitment to driving sustainable development in the region. This landmark project demonstrates the power of collaboration and innovative financing to deliver clean, reliable power at scale. We are proud to partner with HAU Energy and our financial partners to bring this transformative project to life, contributing significantly to Egypt’s decarbonisation goals and creating long-term economic value.”

Amr Allam, Co-CEO at Hassan Allam Holding, said: “In a significant milestone in the project’s development timeline, reaching financial close for the Suez Wind project alongside our esteemed partner, ACWA Power, marks a pivotal moment towards a more sustainable future for Egypt. Our joint development efforts and our ability to secure financing for this project alongside our partner underscores our commitment to clean energy and the energy transition, and we are proud to be part of this transformative project that will have a positive impact on Egypt’s energy landscape and beyond.”

Thomas Brostrom, Chief Development & Investment Officer at ACWA Power, said: “The Suez Wind project underscores ACWA Power’s proactive approach to identifying and developing world-class renewable energy projects. Securing financing for a project of this magnitude underscores the confidence investors have in our expertise and the viability of the Egyptian renewables market. This project not only diversifies Egypt’s energy mix but also serves as a catalyst for economic growth, job creation, and technological advancement in the region.”

ACWA Power has had a presence in Egypt since 2015, and currently has two other facilities in the country that are operational, including a 120MW solar PV project in Benban, and a 200MW solar PV facility in Kom Ombo. In 2023, the company was allocated 3,000 square kilometres of land west of Sohag for a 10GW wind project. ACWA Power is also exploring opportunities to develop a green hydrogen project in Egypt, with an initial planned capacity of 600,000 tonnes of green ammonia annually.

HAU Energy, a leading entity in Egypt’s renewable energy sector, is backed by a strong shareholding structure comprising Hassan Allam Utilities, Meridiam, and EBRD. With the strategic support of Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding, HAU Energy has built a robust portfolio of solar and wind projects. In addition to its co-development role with ACWA Power on the Suez Wind project, HAU Energy is a key partner and developer in major renewable energy investments in Egypt, including a 10GW wind project and a 1.2GW solar power with advanced storage technology project to help realise Egypt’s clean energy transition.