Norwegian renewables developer Scatec ASA (OSL:SCATC) and the Egyptian Electricity Transmission Company (EETC) have signed a pact to initiate studies for the development of a 3-GW interconnection that will export renewable energy from Egypt to Europe via Italy.
Prime Minister Mostafa Madbouly witnessed the signing of the memorandum of understanding (MoU) between the two sides on Monday, a statement by the Egyptian Cabinet reads.
Under the memorandum, studies will be launched as a preliminary step for the development of the project which envisages exporting renewable energy to Europe via Italy, using a subsea cable with a capacity of no less than 3 GW. Scatec will seek approval from the Italian power grid operator and an international consultant will be appointed to identify renewable energy sources to be used for energy export and determine the route for the subsea cable.
The completion of the project studies and the approval from the EETC will be followed by discussions on the implementation of the project in coordination with the transmission network operator in Italy.
Scatec's chief executive Terje Pilskog noted that the Norwegian company will be responsible for the project's development and for obtaining project financing at competitive rates from international financial institutions.
After the signing, Egypt's Minister of Electricity and Renewable Energy Mohamed Shaker commented that the pact comes to enhance cooperation between Egypt and the EU in the field of energy in general and renewable energy in particular. It follows a strategic partnership between the two sides that was formed at the COP 27 summit in November for the development, production, consumption and trade of renewable hydrogen and its derivatives.
Scatec is already active with several large-scale renewable energy, hydrogen and green fuel projects in the North African country. It is part of a group of companies that commissioned Africa's first electrolyser in November 2022 as an initial phase of a 100-MW green hydrogen project located in Ain Sokhna, close to the Suez Canal Economic Zone.
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