China Energy Engineering plans to expand renewable and desalination investments in Egypt

China Energy Engineering Corporation-CEEC (SSE: 601868) has announced plans to scale up its investments in Egypt's renewable energy and water desalination sectors, with a focus on localising the production of key components, according to a statement from the Egyptian cabinet, cited by Economy Plus on June 5. 

China Energy Engineering Corporation is a state-owned energy conglomerate that provides design, construction, and equipment manufacturing for large-scale power generation, grid, and infrastructure projects globally. 

The announcement followed a meeting between PM Mostafa Madbouly and CEEC Chairman Ni Zhen, held in the presence of Minister of Electricity and Renewable Energy Mahmoud Esmat, to explore avenues for joint cooperation. The talks covered a range of proposed partnerships, particularly in support of the national electricity grid, the development of new and renewable energy, and seawater desalination.

Madbouly said Egypt aims to enhance renewable energy projects, noting the government's target of raising the share of new and renewable sources to 45% of the country's total energy mix by 2028. He expressed Egypt's ambition to collaborate with CEEC on localising the manufacture of renewable energy components to meet domestic demand and support exports. Madbouly also noted the country’s keen interest in seawater desalination and the localisation of desalination plant components, citing the firm's considerable capabilities in this area. The PM directed both sides to draw up detailed implementation plans with a clear timetable, pledging to remove any procedural obstacles facing the company's future projects in Egypt.

CEEC Chairman Ni Zhen noted the company's considerable global growth, with total assets now valued at $140bn. Esmat pointed to existing cooperation with CEEC in renewable energy and outlined plans to localise power station components and support the national electricity grid in the period ahead.