Japan-based Marubeni and Egypt's El Sewedy Electric have inked a memorandum of understanding (MoU) with Egyptian Electricity Holding Company (EEHC) to perform a feasibility study for construction of a coal-fired power plant in the North African country.
The MoU forms a part of Marubeni's efforts to strengthen its global power infrastructure business.
As the agreed terms, Marubeni and El Sewedy will assess the feasibility of developing a high-efficiency ultra-supercritical coal-fired power plant in the West Mattrouh region for Egypt's state-run electricity utility EEHC.
The power plant would help the Egyptian Government meet its goal of generating approximately 12.5GW of power from coal-fired plants by 2022 as part of its plan to diversify energy resources.
Marubeni spokesman was reported by Reuters as saying that the plant's size and cost are due to be decided, while the feasibility study will be completed within a span of two years.
The MoU follows Marubeni's recent announcement to build a 400MW Bibiyana-III gas based combined cycle power plant in Bangladesh for Bangladesh Power Development Board (BPDB), a national power development entity.
Marubeni is believed to support the development of a 4GW coal-fired power station, which would require an investment of more than $3.5bn, reported Nikkei business daily.
To date, Marubeni has signed engineering, procurement and construction contracts for more than 100GW of power plant projects, including 40GW of coal-fired facilities.