Egypt and Norway have inked a deal to advance green industrial transformation through the Dandara Solar Project. The Letters of Intent for the project’s financing were signed in the presence of Egypt’s Ministers of Planning, Economic Development and International Cooperation, and Public Business Sector, along with Norway’s Ambassador.
The agreements involve Dandara Solar Energy Company, a subsidiary of Norway’s Scatec ASA, and leading international lenders — the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).
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Dandara project
The Dandara project is set to supply clean electricity to the Egypt Aluminium (Egyptalum) complex in Nagaa Hammadi, Upper Egypt. The initiative, designed as the region’s first large-scale industrial decarbonization project, aims to cut Egyptalum’s greenhouse gas emissions by up to 30% and strengthen its competitiveness under the EU’s Carbon Border Adjustment Mechanism (CBAM).
Under the agreement, Scatec’s Egyptian subsidiary will build, own, and operate the solar plant for 25 years. The project will deliver clean, cost-competitive energy to the Egyptalum complex, helping lower operating costs, enhance production efficiency, and align the aluminium industry with global decarbonization standards.
Minister of Public Business Sector Mohamed Shimi described the project as “a qualitative leap for Egypt’s aluminium industry,” saying it will boost export competitiveness and attract more foreign investment. He noted that over half of Egyptalum’s production is exported, mainly to the European Union.
Minister of Planning and Economic Development Rania Al-Mashat emphasized that Dandara forms a key part of Egypt’s Nexus of Water, Food, and Energy (NWFE) program, which targets adding 10 GW of renewable energy capacity by 2028. She said the program has already mobilized US $4bn in concessional financing for 4.2 GW of private-sector renewable energy projects.
Al-Mashat added that the project will support national grid stability and reinforce Egypt’s position as a regional leader in renewable energy and low-emission industrial production. She highlighted that the government allocated EGP 6.7 billion last fiscal year to connect four renewable energy projects to the grid, strengthening supply during summer demand peaks.
The Dandara project represents a landmark in public–private–international cooperation, underscoring Egypt’s commitment to sustainable industrial growth and its transition toward a green, competitive economy.
