Oslo-headquartered renewable energy company Scatec ASA has signed loan agreements for the first phase of the Dandara (Egypt Aluminium) project in Egypt and is starting construction of the power plant.

The announcement, made on 28 October 2026, marks a regulatory milestone for the project, which Scatec describes as a major step in its journey in the Egyptian market.

Scatec secures USD 217 million in phase one financing

The non-recourse project financing for the first phase amounts to USD 217 million and is provided by three development finance institutions: the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).

According to Scatec, the financing amount corresponds to approximately 80 percent of the total estimated capital expenditure for the first phase, which stands at USD 271 million.

With financing secured, Scatec is moving ahead with the build-out of a project it frames as a new application of its integrated delivery model, bringing large-scale renewable power combined with battery storage to serve an industrial offtaker rather than the grid alone.

Project scope: 569 MW of solar and 100 MWh of storage

The first phase of the Dandara project comprises a 569 MW solar plant paired with a 100-MWh battery energy storage system (BESS).

The facility will supply renewable electricity to Egypt Aluminium, one of the country's energy-intensive industrial companies, under a 25-year power purchase agreement. The power purchase agreement is backed by a sovereign guarantee.

Once operational, Dandara is expected to generate approximately 1.4 TWh of clean electricity annually. Scatec states that the project will lead to the abatement of more than 550,000 tonnes of CO2 emissions each year.

Beyond the emissions reductions, the company points to the commercial significance of the arrangement: the supply of renewable power is intended to help Egypt Aluminium reduce its carbon footprint and meet evolving trade-related environmental standards, strengthening the appeal and competitiveness of Egyptian products in international markets.

Scatec will deliver Engineering, Procurement and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services for the project.

The company's EPC scope represents approximately 80 percent of the total capital expenditure. Commercial operation for the first phase is targeted in the first half of 2028.

National Bank of Egypt takes 20 percent stake

Alongside the loan agreements, Scatec has signed a partnership agreement with the National Bank of Egypt (NBE), which will join the project with a 20 percent ownership stake.

The entry of the Egyptian bank adds a domestic financial institution to the project's ownership structure alongside the international lenders providing the debt.

Ownership structure and plans for further partners

Following the NBE transaction and a recently announced EBRD transaction, Scatec holds a 56 percent ownership interest in the Dandara project. Of that stake, 36 percent is held through the EBRD platform, and 20 percent is held outside the platform.

Scatec has indicated that it intends to invite additional equity partners into the project and to secure equity bridge loans (EBLs). This structure would allow the company's equity injection to be deferred until the end of the construction period, reducing the capital Scatec must commit during the build phase.

Second phase on the horizon

While the current financing and construction activity concern the first phase, Scatec expects to commence construction of the second phase of the Dandara project in the first half of 2027.

The company has not detailed the size or financing of the second phase in this announcement, but the timeline indicates that construction activity at the site will be ramping up well before the first phase reaches commercial operation.

Building on the Obelisk track record

Scatec CEO Terje Pilskog framed the Dandara project as a continuation of the company's established presence in Egypt.

"Dandara is another major milestone in Scatec's journey in Egypt," Pilskog said. "Building on the successful delivery of Obelisk, Africa's largest hybrid solar and battery installation, we are now bringing the same integrated model to industrial decarbonisation at scale."

According to the CEO, the combination of a long-term supply agreement with an energy-intensive industrial customer, backed by a sovereign guarantee, demonstrates both the quality of what Scatec is building in Egypt and the confidence that leading development finance institutions place in the company as a partner.

"Egypt is one of our most important markets, and Dandara reinforces our position as a long-term contributor to the country's energy transition," Pilskog said.

Industrial decarbonisation as a growing market

The Dandara project stands out for its structure: rather than selling power to a utility under a government-backed offtake arrangement in the conventional sense, the plant is dedicated to supplying a single industrial customer, Egypt Aluminium, under a long-term contract.

The sovereign guarantee supports the power purchase agreement, providing security for the lenders and equity investors involved.

Scatec's announcement emphasises the trade dimension of the arrangement, noting that access to renewable electricity will help Egypt Aluminium meet evolving environmental standards tied to international trade and improve the competitiveness of Egyptian products abroad.

This positions the project as an example of renewable energy being deployed specifically to address the decarbonisation needs of heavy industry, an area where energy-intensive manufacturers face increasing pressure to demonstrate lower-carbon production.

Key dates and figures at a glance

The first phase of the Dandara project is defined by a set of concrete parameters. The solar plant will have a capacity of 569 MW, complemented by 100 MWh of battery energy storage.

Total estimated capex for the phase is USD 271 million, of which USD 217 million, or roughly 80 percent, is covered by non-recourse project debt from the EBRD, AfDB, and EIB. Scatec's EPC scope likewise accounts for approximately 80 percent of total capex.

The ownership split following the recent transactions gives Scatec 56 percent, with NBE holding 20 percent, and Scatec's holdings divided between 36 percent through the EBRD platform and 20 percent outside it.

The project is expected to deliver about 1.4 TWh of clean electricity annually and abate more than 550,000 tonnes of CO2 per year. Construction is starting now, second-phase construction is expected to begin in the first half of 2027, and commercial operation of the first phase is targeted for the first half of 2028.

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