FMO considers $60m loan for Egypt wind project in Gulf of Suez

The Dutch entrepreneurial development bank FMO is considering providing a long-term loan of up to $60mn to support the Shuqair Wind Energy project in Egypt, Economy Plus reported on May 5, citing a statement on the bank’s website. 

The funding aims to develop a 900MW onshore wind farm in the West Gabal El-Zeit area of the Gulf of Suez. The project is being implemented by a consortium comprising Toyota Tsusho (TYO:8015), through its subsidiary Aeolus/Eurus, with a 40% stake, alongside Engie (EPA:ENGIE) with a 35% stake, and Orascom Construction (EGX:ORAS) with a 25% stake.

FMO said the proposed financing aligns with its strategy to support climate mitigation activities and contribute to the UN Sustainable Development Goal 13 on climate action.

Toyota Tsusho and Engie bring strong financial positions and extensive experience in developing and operating renewable energy projects globally, including in Egypt. Orascom Construction complements the consortium as a key developer with a proven track record in delivering large-scale infrastructure and wind energy projects.

The financing is part of a broader package led by Proparco, with participation from other development finance institutions and commercial banks. The project is expected to play a significant role in advancing Egypt’s renewable energy targets by adding substantial wind generation capacity, supporting the transition to a lower-carbon electricity mix, and reducing greenhouse gas emissions.

Egypt’s updated Integrated Sustainable Energy Strategy (ISES) aims to generate 42% of its electricity from renewable sources by 2030 and 60% by 2040, supported by the planned addition of 3,000MW of solar and 600MW of battery storage capacity in 2026 alone.