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Egypt-headquartered Orascom Construction, part of a consortium developing the 650 Megawatts (MW) Build-Own-Operate (BOO) wind farm in Ras Ghareb, Egypt, has commenced commercial operations for 306 MW of capacity.
This milestone was achieved four months ahead of schedule and exceeds the contractual target by 56 MW, the EGX and NASDAQ-listed company said in a statement.
The project is being developed by Red Sea Wind Energy, a consortium comprising Engie (35 percent), Orascom Construction (25 percent), Toyota Tsusho Corporation (20 percent), and Eurus Energy Holdings Corporation (20 percent), under a 25-year Build-Own-Operate (BOO) scheme.
Orascom Construction is executing the construction of the civil and electrical works of the wind farm.
In addition, the consortium achieved financial close for the 150 MW expansion, bringing the project's total capacity to 650 MW.
Non-recourse project financing is provided by the Japan Bank for International Corporation (JBIC) in coordination with Sumitomo Mitsui Banking Corporation, Norinchukin Bank, and Société Générale under a Nippon Export and Investment Insurance cover, and the European Bank for Reconstruction and Development (EBRD). The same entities financed the 500 MW phase.
Construction of the remaining capacity is on track, which will be gradually connected to the national grid by the third quarter of 2025, making the project the largest operational wind farm in the Middle East and Africa.
The 650 MW wind farm will generate clean energy for over one million homes, reducing carbon emissions by 1.3 million tonnes annually.
The consortium has been allocated a new land plot in Egypt for a 1 GW wind farm and is currently conducting development activities.
(Writing by P Deol; Editing by Anoop Menon)
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