An alliance led by Saudi Arabia's ACWA Power (TADAWUL:2082) has consented to a usufruct arrangement with the Egyptian government for a 1.1-GW wind energy project in the Gulf of Suez and Jabal El-Zeit.

The deal was inked by the New and Renewable Energy Authority (NREA) and representatives of the Saudi designer and its partner on the project, Egypt-based engineering, development and framework organization Hassan Allam Holdings. The signing ceremony took on Wednesday and was seen by Prime Minister Mostafa Madbouly and Mohamed Shaker, Minister of Electricity and Renewable Energy.

Under the arrangement, the consortium will work during the improvement stage to finish site studies and secure financing for the Suez Wind Energy project which is assessed to cost about USD 1.5 billion (EUR 1.36bn), Shaker commented after the ceremony.

Once up and running, the wind farm is supposed to supply power to about one million families, balancing 2.4 million tons of carbon dioxide emissions and saving around 840,000 tons of fuel each year.

The project is greater part possessed by ACWA Power with Hassan Allam holding a 25% interest. Oman Investment Authority (OIA) signed a memorandum at COP27 in 2022 to explore a potential investment in the initiative, focusing up to 10%.