Orascom Construction granted land for coal plant on Red Sea coast
Egypt has granted a consortium led by Orascom Construction Industries exclusive rights to an industrial site near the Red Sea port Hamrawein for 18 months. The deal, signed Wednesday, gives the firms the right to conduct and finalize studies for developing a coal-fired power plant.
Last week, Orascom, in partnership with Abu Dhabi state-owned firm International Petroleum Investment Company, announced plans to develop a coal-powered plant capable of generating 2,000 to 3,000 megawatts of power.
“Growth in power generation is crucial to the sustained development of the Egyptian economy,” said OCI head Nassef Sawiris, Egypt’s richest man, in a press statement announcing the project.
Despite Egypt’s persistent energy shortage, allowing coal power has been highly controversial. Plans to overturn Egypt’s ban on coal imports generated months of debate, with civil society organizations, environmentalists and members of the tourism industry opposing the plan on environmental and public health grounds, while industry representatives cited the need for a cheap and reliable source of energy.
In April, Egypt’s Cabinet ruled to allow the use of coal, pending the development of environmental standards for the transport, storage and burning of coal. Those standards have not yet been publicly released, but cement plants have begun tests with coal-fired kilns.
In addition to the OCI project, Egypt in September signed a deal with the Abu Dhabi-based Al-Nowais company to build a coal power plant in the Oyoun Moussa area in South Sinai.
The coast around Hamrawein is known for offering world-class diving, while Oyoun Moussa, which is home to springs where Moses is said to have made his first stop after leading the Hebrew exodus out of Egypt, is trying to market itself as a medical tourism and health spa destination.
According to Reuters, Electricity Minister Mohamed Shaker said on Tuesday that the government is in talks with several large investors about building coal-burning power plants.
أخبار ذات صلة
Egypt commemorates World Environment Day, announces cleanup efforts
The Environment Ministry marked this year's World Environment Day on June 5 by taking part in the official campaign named I’m With…
In post-revolution Egypt, a fierce fight over coal imports
The fight over coal demonstrates the continued influence of powerful business lobbies in Egypt
Egypt eases restrictions on importation and burning of coal, environmentalists warn of implications
Environmentalists argue the public has little information on emissions from Egypt's coal and cement factories
Report: World Bank policies in Egypt may exacerbate climate change
World Bank policies are increasing carbon emissions in Egypt, exacerbating risk for the most vulnerable
Your support is the only way to ensure independent, progressive journalism survives.
You have a right to access accurate information, be stimulated by innovative and nuanced reporting, and be moved by compelling storytelling. Subscribe now to become part of the growing community of members who help us maintain our editorial independence.
Join us