IRSC for Renewable Energy Solutions has agreed to supply renewable electricity to Egypt’s El Nahda Cement under a long-term power purchase agreement (PPA) linked to a new solar project it will develop and operate.
The 30-year power purchase agreement (PPA) was signed between El Nahda Industries and Cobalt, a subsidiary of IRSC, according to a statement from the Ministry of Public Business Sector. The signing ceremony was attended by Egypt’s Minister of Public Business Sector, Mohamed Sheimy.
Under the agreement, Cobalt will finance, build, and operate a 27MW solar power plant to supply clean electricity to El Nahda’s cement facility in Qena governorate. The project will be implemented under a public-private partnership model, with El Nahda committing to purchase the renewable power at pre-agreed tariffs throughout the contract period.
Cobalt will oversee all phases of the project, including technical assessments, financing, engineering, procurement, construction, as well as ongoing operation and maintenance.
Minister Sheimy said the agreement aligns with the government’s strategy to accelerate the green transition across state-linked and private companies by expanding the use of renewable energy and improving energy efficiency. He added that the shift to clean power would enhance El Nahda’s competitiveness and support compliance with the European Union’s Carbon Border Adjustment Mechanism, which is expected to increase costs for carbon-intensive exports.
El Nahda’s cement plant in Qena has been in operation since 2012 and has an annual production capacity of approximately 1.5Mt of Portland cement.
