Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) hereby announces that it has acquired an equity stake in AMUNET WIND POWER COMPANY S.A.E. ('Amunet') and signed a loan agreement with a group of banks including Japan Bank for International Cooperation ('JBIC') in relation to its onshore wind independent power producer (IPP) project in Egypt ('the Project'), which Sumitomo Corporation has been developing in partnership with AMEA Power (headquarters: Dubai, United Arab Emirates; Representative: Chairman Hussain Al Nowais; hereinafter, 'AMEA'), a renewable energy developer headquartered in UAE.
The Project involves the construction, ownership and operation of onshore wind farm that can generate approximately 500MW of electricity, which amounts to the annual power consumption of around 1 million households, in Ras Ghareb in the Red Sea Governorate along the Gulf of Suez, situated some 240 kilometers southeast of Cairo, the capital city of Egypt. When completed, the Project is slated to sell electricity to Egypt's state-owned Egyptian Electricity Transmission Company over approximately 25 years. The construction is scheduled to take approximately two and a half years until 2025, and the completed facility is expected to become one of the largest onshore wind farms in Egypt. Sumitomo Corporation will engage in the development, construction and operation of the wind farm by leveraging its expertise acquired through its track record of overseas onshore wind farm projects in the United States, the Republic of South Africa, the People's Republic of China, and other locations.
The Project is to be co-financed by JBIC, International Finance Corporation (IFC), Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Standard Chartered Bank, and others through a project financing scheme, for which an agreement-signing ceremony took place locally on November 30, 2022. The portion financed by private financial institutions will be covered by Overseas Untied Loan Insurance provided by Nippon Export and Investment Insurance (NEXI).
The Egyptian government upholds the target of increasing the proportion of renewable energy in its national electricity mix to 35% by 2030, and further to 42% by 2035. With the aim of contributing to achieving a sustainable society. Sumitomo Corporation is striving to develop and deploy carbon-free energy such as hydrogen, and has set a medium-term goal to double the supply of renewable energy to 3 GW or more by 2030 on a net ownership generation capacity basis. Through the Project, which isSumitomo Corporation 's first large-scale wind power generation project in the Middle East region, Sumitomo Corporation aims to contribute to Egypt's energy transition as well as to the development of its local communities and economy.
Sumitomo Corporation's Material Issues
Sumitomo Corporation Group positions 'Six Material Issues to Achieve Sustainable Growth with Society' as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.