Clifford Chance has advised AMEA Power, one of the fastest growing renewable energy companies in the Middle East, on its transactions to deploy 1GW of renewable energy projects in Egypt constituting a 500MW solar PV plant and a 500MW wind farm. The landmark projects represent US$1.1 billion of investment into the Egyptian economy and takes the company’s clean energy portfolio to 2GW in the country.
AMEA Power will develop, own and operate the 500MW solar PV plant, which will be located in the Aswan governorate of Egypt financed by International Finance Corporation (IFC), part of the World Bank Group, Dutch Entrepreneurial Development Bank (FMO) and the Japan International Cooperation Agency (JICA).
The 500MW wind farm, set to be the largest in Africa, is located in the Red Sea Governorate and is being developed in partnership with Sumitomo Corporation, who will own 40% equity in the project. Financing is being provided by a consortium of banks, including Japan Bank for International Cooperation (JBIC) and IFC, together with Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank participating as co-lenders under Nippon Export and Investment Insurance (NEXI) cover.
The projects will underpin the renewable energy ambitions of Egypt, along with supporting economic and social development within the region. The Egyptian government is working towards increasing the supply of electricity generated from renewable sources to 42% by 2035.
AMEA Power has also recently signed a Framework Agreement with the Egyptian Government, on the sidelines of the United Nations Climate Change Conference (COP27) in Sharm El-Sheikh, to develop a large-scale green hydrogen project, which will serve as a feedstock for the production of green ammonia. Once completed, the 1GW plant will be able to produce 800,000 tons of green ammonia per year for export.
The Clifford Chance team advising AMEA Power was led by partner Mohamed Hamra-Krouha and assisted by counsels Igor Bichenkov, Inaamul Laher and Cheuk-yin Cheung, senior associate Anna Cornelius, associates Gaurav Sharma, Vany Attarian, Mahmoud Elbanhawi and trainees Aishah Bashir and Malek Arab.