May 16 (Renewables Now) - Lafarge Egypt, part of cement giant Holcim Ltd (SWX:HOLN), has signed a USD-93-million (EUR 89.55m) deal to offtake electricity from a solar park that will be built by Lumika Renewables Egypt.

Under a long-term agreement, Lumika will set up its first solar park in the North African country with a capacity of up to 50 MW and Lafarge Egypt will procure 140 GWh of green electricity a year from the facility to power its cement factory in Ain Al-Sokhna, Suez Governorate.

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With the offtake deal, the cement maker aims to boost the share of clean power to 50% of the electricity used during the day at the plant. With about 2,000 employees, Lafarge Egypt's factory in Ain Al-Sokhna has a capacity of 10.2 million tonnes per year and annual power consumption of about 750 GWh.

The agreement will enter into force by the first quarter of 2024.

Lumika Renewables is a joint venture of South Africa-based industrial group Reunert and A.P. Moller Capital. The joint business was created in 2021 to develop a portfolio of cost-efficient, renewable energy solutions for commercial and industrial customers in Africa.

(USD 1 = EUR 0.963)