Scatec has entered into shareholder agreements with Norwegian investment fund Norfund and EDF power solutions, a global developer and operator of renewable and low-carbon power assets, to establish an equity partnership for Scatec’s Obelisk project in Egypt.

Located in Naga Hammadi in Upper Egypt, the Obelisk project is a hybrid installation combining 1.1GW of solar capacity with a 100MW/200MWh battery energy storage system.

The Climate Investment Fund, managed by Norfund, has pledged Nkr400m ($39.55m) to Scatec’s Obelisk project, marking its first investment in Egypt.

Under the transaction, Norfund, through the Climate Investment Fund, will hold a 25% stake in the Obelisk holding company while Scatec will retain the remaining 75%.

EDF power solutions, meanwhile, will acquire a 20% interest in the operating company.

This results in Scatec and Norfund holding 60% and 20% economic interest respectively, with Scatec maintaining economic control over the power plant.

Scatec said it is currently in advanced talks with additional investors and plans to further reduce its economic interest in the project.

The Obelisk project will produce over 3,000GWh of electricity each year, preventing approximately 1.5 million tonnes of carbon dioxide emissions annually.

That reduction is on par with Norway’s largest single point source, Mongstad, and represents about 3% of Norway’s total yearly emissions, according to Norfund.

Scatec CEO Terje Pilskog said: “We are very pleased to continue our valuable collaborations with Norfund and EDF power solutions through these partnerships.

“Obelisk is Scatec’s largest project to start construction to date and combines solar and batteries to deliver stable and cost-competitive renewable energy to support Egypt’s growing power demand and energy transition.”

In September this year, Scatec finalised a 15-year power purchase agreement with BTG Pactual Comercializadora de Energía, a subsidiary of Banco BTG Pactual Brazil, for a solar power project in Colombia.