Norwegian developer Scatec is increasing its presence in North Africa through new solar and green hydrogen ventures in Egypt and Tunisia.
Highlighting Egypt as a key growth market, Scatec is focusing on solar and battery storage as part of a strategic shift, with plans to invest heavily across its core markets, including Brazil, South Africa, and the Philippines.
In Egypt, Scatec recently signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company to develop a 1.1-gigawatt (GW) solar power facility, accompanied by a 100-megawatt (MW) battery storage system. This project will support Egypt’s renewable energy ambitions as it aims to expand its green capacity from 7 GW to 38 GW by 2030.
Scatec’s Egypt Green Hydrogen subsidiary secured a 20-year ammonia offtake agreement with Fertiglobe for its planned 100 MW electrolyzer plant, powered by 260 MW of solar and wind sources.
In Tunisia, Scatec, alongside Toyota Tsusho Group, began constructing 120 MW of solar capacity at Tozeur and Sidi Bouzid. Backed by a 20-year PPA with a 10-year extension option, this $88 million project will contribute to Tunisia’s clean energy goals.
Scatec will implement an “equity-last” financing structure for both the Egyptian and Tunisian projects, enabling the firm to optimize cash flows and defer capital outlays until later stages.
During Q3 2024, Scatec reported a substantial year-on-year revenue increase to NOK 2.4 billion ($216 million), driven by new projects and increased production. Its EBITDA rose 69% to NOK 1.5 billion ($135 million), highlighting the firm’s profitability amid its global expansion efforts.
