The European Investment Bank (EIB) on Monday announced commitments of USD 100 million (EUR 97m) to Alcazar Energy Partners II, a fund that will invest in renewable energy projects in the Middle East, North Africa, Eastern Europe and Central Asia.
The commitments include USD 25 million from the Emerging Markets Climate Action Fund, which was launched during COP26 in 2021 by the EIB and asset manager Allianz Global Investors, part of Germany’s Allianz (ETR:ALV), along with USD 75 million from EIB Global.
EIB and EMCAF are part of eight public and private institutional investors that provided funds for Alcazar Energy Partners II’s first close at USD 336.6 million, according to a separate announcement from Alcazar Energy.
The fund has a target size of USD 500 million and a hard cap of USD 650 million. It will provide early-stage equity financing for the development, construction and operation of onshore wind and solar photovoltaic projects and potentially other low-carbon technologies such as hydropower, biomass or battery electricity storage.
The new vehicle is expected to support the deployment of more than 2 GW of clean energy capacity.
The announcement was made during the COP 27 climate summit in Egypt.
Alcazar Energy said Alcazar Energy Partners II has already signed a memorandum of understanding (MoU) with Egypt’s government to invest in a green hydrogen-based ammonia facility that will be powered by a 1-GW renewable energy plant and will produce 230,000 tonnes a year. This was announced as part of USD 32 billion of MoUs for green fuel projects in Egypt in August. Alcazar Energy’s project has attracted the interest of a number of European and Asian investment grade off-takers, according to the firm’s announcement.
(USD 1 = EUR 0.970)
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