Electrical engineering company Siemens and the Egyptian government reached two firm agreements on March 14 – firstly, to build a 4.4 GW combined-cycle power plant and, secondly, to install wind power capacity of 2 GW – both in Egypt.
As a result, Siemens will build a factory in Egypt to manufacture rotor blades for wind turbines, creating up to 1 000 jobs and nearly trebling Siemens’ footprint in Egypt, says the company.
Including two further memoranda of understanding, which were signed at the event, Egypt’s power generation capacity will be increased by up to one-third by 2020.
Under the agreements, Siemens proposed to build additional combined-cycle power plants, with a capacity of up to 6.6 GW, and ten substations for reliable power supply.
The agreements were signed at the Egypt Economic Development Conference in Sharm el-Sheikh in the presence of Egypt’s Minister of Electricity, Shaker al Markabi; Germany’s Vice Chancellor, Sigmar Gabriel; and Siemens president and CEO Joe Kaeser.
“Egypt needs a powerful and reliable energy system to support its long-term, sustainable economic development, [as well as] experienced partners who understand the specific challenges facing the country,” says Kaeser.
He adds that Siemens’ technology and expertise have been supporting Egypt’s growth for more than 150 years and that Siemens’ record shows that it delivers what it promises, albeit in challenging times. “We are part of Egypt’s society and are proud to shape Egypt’s future together. We have also agreed to continue the well-established practice of dual-education apprenticeships, [which has been] a success story between Germany and Egypt for decades.”
According to the agreements, Siemens will be the contractor responsible for engineering, procurement and construction for the Beni Suef power plant, in Upper Egypt, working together with local partners.
The 4.4 GW power plant will be built in four modules, each consisting of two H-class gas turbines, two heat-recovery steam generators, one steam turbine, and three generators.
Siemens H-class technology meets Egypt’s requirements, combining a high output with record-breaking levels of efficiency.
“Wind power is clean and renewable and will strengthen Egypt’s energy security at this important point in its history. Adding two GW will be a significant step towards diversifying the country’s energy mix”, says Siemens wind power and renewables division CEO Markus Tacke.
He further highlights Egypt’s potential for wind power generation, especially in the Gulf of Suez and the Nile Valley. “We are proud to be working with the government and the people of Egypt to tap into this potential.”
According to Siemens, the company has class-leading technology for both onshore and offshore wind power technology, as well as substantial global experience in the construction and delivery of wind energy projects.
Meanwhile, the Egyptian government plans to expand wind capacity over the coming years as part of a plan to increase wind generation to 7.2 GW by 2020.
Siemens has been working in Egypt since 1859 and has maintained a continuous presence in the country since opening its first office in Cairo in 1901.
Siemens’ technology has been implemented at the Nubaria power plant, located at the El Nobaria canal; the Talkha power plant, located at Talkha City; the Damietta power plant, located west of Al-Bustan; the Midelec power plant, located in Alexandria; and the El Kureimat power plant, located 95 km south of Cairo.
Siemens is also a key technology supplier to major projects in the Egypt’s transport, healthcare and industrial sectors and has been a reliable partner of Egypt’s for than 100 years.