The Climate Investment Fund is committing 400 million kroner to Scatec’s Obelisk project in its first investment in Egypt. The hybrid plant, with 1.1 GW of solar power and 200 MWh of battery storage, will help avoid 1.5 million tons of CO₂ annually.
The project, located in Naga Hammadi in Upper Egypt, will deliver stable and cost-efficient renewable energy to a country with rapidly growing power needs. Obelisk is Scatec’s largest project to date.
The large-scale project will generate more than 3,000 GWh of electricity annually, avoiding 1.5 million tons of CO₂ emissions. That is roughly equivalent to Norway’s largest single point source, Mongstad, or about 3 percent of Norway’s annual emissions.
“This project is an example of what we need more of in development policy. By combining private and public capital, we help deliver high-tech solutions that create jobs and cut greenhouse gases in developing countries. In October, I learned about the important role Scatec plays in Egypt when I visited the country, and I look forward to following their work going forward,”
Åsmund Aukrust
Minister of International Development
Through the agreement, Norfund, via the Climate Investment Fund, will own 25 percent of the Obelisk holding company, while Scatec will own the remaining 75 percent. The French company EDF will own 20 percent of the operating company (SPV), giving Scatec and Norfund total ownership shares of 60 and 20 percent respectively.
“The Obelisk project is a good example of how the Climate Investment Fund can help accelerate the transition from fossil to renewable energy in emerging markets through profitable investments,”
Bjørnar Baugerud
Head of the Climate Investment Fund
The investment is the Climate Investment Fund’s first in North Africa and its first in Egypt. The country was added earlier this year as one of the fund’s 13 priority countries, and Norfund has worked with Scatec on this investment for an extended period.
“We are very pleased to continue our valuable collaboration with Norfund. Obelisk is the largest project Scatec has begun constructing to date, and the combination of solar and batteries will deliver stable and cost-efficient renewable energy to meet Egypt’s growing power needs and support its energy transition,” says Scatec CEO Terje Pilskog.
Since Norfund began managing the Climate Investment Fund in 2022, it has committed 5.6 billion kroner during its first three years. These investments support projects that, once completed, will avoid 17.6 million tons of CO₂ annually. That corresponds to 40 percent of Norway’s annual emissions. At the same time, the fund has delivered an average return of 14.4 percent in investment currency (19 percent in NOK).