Orascom Construction, a Cairo-based construction firm led by the Sawiris family — Egypt’s richest family — has made a significant announcement regarding the Gulf of Suez Wind Farm.
The 500-MW wind farm, located near Ras Ghareb, Egypt, in which the company has an indirect interest through its membership in the Red Sea Wind Energy Consortium, has achieved a major milestone by reaching a financial close.
As part of the consortium, Orascom Construction will operate and maintain the wind farm for the next 25 years, under a Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC).
The project will be completed in two phases and is set to connect to the grid with full commercial operation scheduled for the third quarter of 2025.
This achievement underscores the company’s commitment to renewable energy and contributes to Egypt’s goal of increasing its renewable energy capacity.
Why it matters
Upon completion in 2025, the Gulf of Suez Wind Farm will supply clean power to over 800,000 homes in Egypt, making a significant contribution to the country’s transition to renewable power generation and reducing CO2 emissions by approximately 1 million tonnes annually.
This project further cements Orascom Construction’s standing as a leading player in the power and renewable energy sectors in the Middle East and Africa. The company has a proven track record of completing or constructing 30 GW of power projects.
Notably, the Gulf of Suez Wind Farm project is a continuation of the consortium’s successful development of Egypt’s first renewable energy Independent Power Producer (IPP) project. It also aligns with the energy pillar of the Nexus of Water-Food-Energy (NWFE) program, which the government of Egypt presented at COP 27 in November 2022.
What they are saying about the wind farm
Khaled El Degwy, Orascom Construction’s executive director for concessions, commented on the collaboration with the Ministry of Electricity, EETC, and NREA, stating: “We are pleased to extend our collaboration with both our partners and the Ministry of Electricity, EETC and NREA as we achieve this major milestone on our second wind farm in Egypt.”
He highlighted the importance of the project stating that the project will greatly accelerate the transformation of Egypt’s renewable energy sector, which is critical for the country’s sustainable development.
Meanwhile, Toshiyuki Ishikuro, chief operations officer for the machinery, energy and project division at Toyota Tsusho Corporation, emphasized the company’s commitment to achieving carbon neutrality in Egypt.
Ishikuro expressed his delight in continuing the historic 500MW wind project with partners ENGIE, Orascom, and the Egyptian government. With 90 years of business history in Egypt, the country is a vital partner for Toyota Tsusho Corporation and its subsidiary, Eurus Energy Holdings Corporation.
What you should know
Orascom Construction is a multinational engineering and construction firm, widely recognized as a global leader in its industry, with a strong presence and investments across the Middle East, Africa, and the United States.
Founded in 1950 by the late Egyptian businessman Onsi Sawiris, Orascom Construction is 51.8 percent owned by the Sawiris family, underscoring their significant influence over the company. Sawiris, one of Onsi Sawiris’ sons and Egypt’s wealthiest individual, owns 28.97 percent of the company.
The Red Sea Wind Energy S.A.E. consortium, in which Orascom Construction holds a 25 percent stake, is jointly owned by ENGIE, Orascom Construction, Toyota Tsusho Corporation, and Eurus Energy Holdings Corporation, each owning 35 percent, 20 percent, and 20 percent of the company, respectively.
