Egypt has inked a $220 million contract for the Atom Solar Egypt project, involving investors from the UAE, China, and Bahrain to develop solar cells, panels, and energy storage systems in the Suez Canal Economic Zone (SCZONE).
Mostafa Madbouly, Egyptian Prime Minister, witnessed the signing alongside other investors and representatives on Wednesday.
According to the statement from the Egyptian cabinet, the consortium plans to construct a 200,000-square-meter facility in the Sokhna Industrial Zone within SCZONE.
“The SCZONE represents an integrated platform for global investment and a regional hub for the green economy,” said Prime Minister Madbouly.
JA Solar from China, serving as the technical investor, will lead the development of factories producing solar cells, panels, and energy storage systems.
The cabinet stated that the facility will achieve an annual capacity of 2 gigawatts (GW) for solar cells and 2 GW for solar panels, alongside 1 gigawatt-hour (GWh) of energy storage solutions.
In addition, construction is expected to be completed within three years, generating 841 direct jobs, and prioritizing local components like aluminum and glass to enhance supply chain localisation.
On their part, the Egyptian firm, AH Industrial Management, outlined that solar cells will target export markets, while panels will supply the Middle East and Africa regions.
Strategic partnerships
The Atom Solar Egypt project is a partnership between Egyptian, Emirati, Bahraini, and Chinese investors.
The key partners include: the UAE’s Global South Utilities, Bahrain’s Infinity Capital, and China’s JA Solar, with TEDA-Egypt and AH Industrial Management representing local interests.
Ahmed Abou Hashima, founder of Atom Solar Egypt, signed the contract alongside representatives from these entities.
On his part, Walid Gamal El-Din, SCZONE chairman, described the initiative as a “qualitative leap” toward localizing the solar industry and fostering international partnerships in the green economy.
Economic implications in Egypt’s energy sector
This deal aligns with Egypt’s broader strategy to reduce import dependency and attract foreign direct investment, particularly from Gulf and Asian nations, into its renewable sector.
The facility’s role in producing high-efficiency solar products, as reported by Reuters, supports Egypt’s target to increase renewable energy in its power mix to 42% by 2030.
In a broader context, where energy access remains a challenge, such projects could catalyze technology transfer and job creation, as seen in similar Chinese investments like JA Solar’s global operations in over 165 countries.
Overall, the Atom Solar Egypt project not only advances Egypt’s industrial capabilities but also contributes to regional energy security, reflecting collaborative efforts to combat climate change through precise, scalable renewable technologies.
