In line with Egypt’s strategy towards expanding the use of clean energy, Suez Cement Group of Companies (SCGC) – a subsidiary of HeidelbergCement signed a Power Purchase Agreement with Intro Power and Utilities, to set up a photovoltaic solar power station within the premises of the company’s Suez Plant.
With this agreement, SCGC joins forces with Intro Group in a 350 million Egyptian Pounds long-term agreement. The solar power station will Supply Suez plant with circa 45 GWh of clean electricity annually and offsetting more than 22,000 tons of CO2 emissions annually, amounting to 440,000 tons for 20 years. The project, which aims to save on power costs as well as contribute to Net Zero carbon emissions by switching to renewable energy, is set to deploy solar power systems with a total capacity of 20 MW for Suez Plant. This will account for up to approximately 20% of Suez Plant’s total power supply.
“The economic, societal and environmental benefits of renewable energy are numerous – It is available in abundance, cheaper and a healthier option for us and our planet,” said Mohamed Hegazy, Suez Cement Group of Companies‘ Managing Director. “Through transitioning to renewable solar energy, we are looking at long-term economic benefits, laying the foundation for a low-carbon business and energy security without jeopardizing the health of our environment,” he added.
“We are proud about this new milestone and to be one of the few cement players in Egypt taking this step toward using a more affordable and cleaner energy, which will not only help us significantly reduce power costs but will also bring us closer to our 2030 target of reducing net CO2 emissions to 400kg/t corresponding to a reduction of 47% compared with the base year 1990,” Hegazy added.
“Cement manufacturing is an energy-intensive process, and we are considering all levers available to supply our operations with power from renewable sources of energy,” said Omar Khorshid, Technical Director of Suez Cement Group of Companies. “Increasing clean electricity consumption is a key part of our decarbonization roadmap,” he added.
The agreement could not have been concluded at a better timing; Egypt is hosting the Conference of Parties (COP27), the United Nations’ annual conference on curbing the effects of climate change next week in Sharm El Sheikh. the plant will contribute to the country’s plans of 42% renewables by 2030 and to decarbonize the energy sector and meet its targets under Egypt’s Intended Nationally Determined Contributions (INDCs) towards achieving the objectives of the United Nations Framework Convention on Climate Change (UNFCCC).
The construction of the solar power station is scheduled to begin in 2023 and is expected to be operational in H1 2023, after requisite regulatory approvals with expected completion within two years. The solar power station will be connected to the Egyptian electricity grid in the second half of 2023 and will supply Suez Plant with green electricity until 2043.
Intro Group will be responsible for financing all costs related to the project, including developing, managing, operating and maintaining the solar photovoltaic station’s infrastructure. The Suez Plant will be hosting the station on area of over an area of 360,000 m2 to set up and generate solar energy, which is expected to achieve significant recurrent savings annually, while simultaneously improving reliability of supply and improving the group’s environmental footprint.
“We are happy to have started this decarbonization journey with our Partner, Suez Cement Group of Companies,” said Mohammed Abbas, Intro sustainable Resources CEO. “This agreement was bound to happen” continues Abbas; “energy demand and prices are ever increasing while climate change mandates lower emissions. Industries, Utilities and Power Generation companies alike face these challenges while running their daily operations,” Abbas added.
“We are ready to take on these challenge” said Hany Helaly, the CEO of Intro Power & Utilities. “This agreement is an acknowledgment of our business plans. Not every day, you get to add one of the biggest building materials players in the world to our energy & utilities platform where we offer our partners to be energy prosumers through customized and innovative solutions to adapt to their decarbonization strategies,” he added.
Over recent years, SCGC has been continuously investing towards a better Egypt and a cleaner environment and has made a long-term commitment towards being environmentally responsible. This commitment is shown in many undertaken initiatives, including the use of waste heat as an alternative energy source; the production of green products; the use of alternative and biomass fuels; and the use of alternative raw materials.