ALEXANDRIA, Egypt’s Abu Qir Fertilizers and Chemical Industries has signed an EGP76.17mn agreement with the Arab Organization for Industrialization (AOI) to install a further 3MW of solar power capacity, raising its planned two-phase programme to approximately 5.65MW as the fertiliser producer seeks to reduce electricity costs and carbon emissions.
The agreement, signed on November 12 during the 35th Water Treatment Technology and Energy Efficiency Conference in Alexandria, follows board approval on October 29. AOI subsidiary Arab Renewable Energy Company will execute the project over a planned 12 months.
The expansion follows a first-phase investment of EGP88.32mn for 2.65MW of solar capacity, bringing the combined investment to EGP 164.49 mn.
According to Abu Qir’s sustainability disclosures, the first phase is expected to generate approximately 4,500 megawatt-hours annually and avoid 3,200 tonnes of carbon dioxide equivalent emissions once completed.
The investment forms part of Abu Qir’s efforts to reduce reliance on grid electricity and improve operating efficiency. However, solar generation cannot directly replace the natural gas used as feedstock in ammonia production, limiting its contribution to the company’s overall decarbonisation.
Abu Qir has not disclosed projected annual electricity output, financial savings or emissions reductions for the second phase, leaving the investment’s measurable economic and environmental returns to be established.
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Abu Qir awards AOI EGP88.32mn first-phase solar contract
Egypt’s EGP11tn Deal Signals New Push to Turn State Assets into Growth
Read also:Abu Qir’s solar installation programme and investment details
