Saudi Arabia's engineering group Alfanar’s Executive VP, Amer-Al-Ajmi, announced aims to invest $533M in Egypt. Alfanar is planning to build a factory to manufacture wind turbines and later equipment for the production of green hydrogen in Egypt.

The Riyadh-based company has signed two agreements, one of which was with the Arab Organization for Industrialization (AOI) to produce wind energy and green hydrogen, and the second agreement with Benya Group in the field of information technology and digital solutions. It will also look for partners for the project and plans to rely on the technology it acquired last year when it took over wind turbine manufacturer Senvion India Pvt Ltd, Al-Ajmi explained.

The plan is part of an agreement Alfanar signed with the Arab Organisation for Industrialisation (AOI) during a visit of Saudi Crown Prince Mohammed Bin Salman to Egypt.

The initial focus will be on wind energy with hydrogen to be added at a later stage.

The cooperation between Alfanar and AOI is aimed at localising clean and renewable energy technology with the aim of raising the share of locally produced components to avoid import-related costs and help the country increase its reliance on renewable energy.

Alfanar already has worked on wind projects in Spain with a total capacity of 500 MW and has another wind project of 600 MW in India, of which 300 MW are still under construction. In Egypt, it took part in the development and construction phase of the Benban solar park.

Al-Ajmi said the project aims to export turbines and wind power generation requirements to Africa and the Middle East.

As for the other agreement with Benya, it aims to raise the efficiency of infrastructure of data centres and cybersecurity in Egypt.

For Alfanar, Egypt will become a platform for exporting its products in the area of wind energy and green hydrogen such as turbines and electrolysers to Africa,

The Saudi company will consider entering other African countries -- initially as an equipment producer and later as a project developer.