Italcementi signed an MOU with the Egyptian government to build a wind farm on the Red Sea.
Italcementi is a cement manufacturing firm in Italy and the project is part of the country’s plan to mitigate its power shortages through renewable energy.
The facility will have a capacity to generate 120 megawatts of electricity with an investment of $200 million.
The construction will begin in the second quarter of 2015, and production is expected to begin by the end of 2015.
Egypt has been suffering from severe electricity crisis for almost four years.
To overcome the crisis, the government recently approved feed-in tariffs for renewable energy production so that solar vendors can sell electricity to the government.
The government will provide land in El-Zaafarana coastal town, near Cairo, to Italcementi through a usufruct agreement.
Initially, Italcementi will build a facility to produce 200 megawatts with an investment of $330 million, said, Omar Mehanna, chairman, Italcementi.
The agreement was signed during President Abdel-Fattah El-Sisi’s visit to Italy where he met with Italian officials, the pope and business representatives.
Sabeena Wahid
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