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Egypt’s Arab Contractors affiliate Nahdet Misr Environmental Services is looking to set up two waste-to-energy (WtE) projects in Alexandria, managing director Mohamed Abdelatif told Al Mal. The first project will have initial investments of USD 100 mn and the company wants to set up the projects in partnership with China’s TEDA Holding, according to Abdelatif.
What’s next? Nahdet Misr for Environmental Services is in talks with authorities to find the suitable plots for the projects. The company aims to commence work on the first project as soon as possible.
Who’s doing what? TEDA Holding will fund the project, while Nahdet Misr will be responsible for providing the waste.
Fresh incentives for WtE projects may also be on the way: The Environment Ministry is considering raising the feed-in tariff rate for WtE plants — the set price that the government pays for the electricity they generate — in a bid to make the sector more attractive to investors, Waste Management Regulatory Authority (WRMA) consultant Khaled Elfarra recently told EnterpriseAM Egypt. The proposed price increase would see the feed-in-tariff rate rise to around EGP 2.35/Kwh — up from EGP 1.40/Kwh, which hasn’t changed since 2019. The tariff will fluctuate along with exchange rate fluctuations, he added.
Nahdet Misr isn’t the only company gearing up to launch WtE projects in Egypt: We heard last month that the government is set to sign contracts collectively worth up to USD 1.2 bn with eight local-foreign consortiums to produce a total of 1.7 bn Kw/h of electricity from municipal solid waste across a number of governorates, according to Elfarra.
And the government wants WtE to play an important part in the country’s energy mix: The government has long been planning to boost electricity generation from municipal waste, initially setting a target back in 2020 of generating 300 MW of electricity from WtE projects by 2025.
