Lafarge Egypt inks $93M solar offtake agreement with Lumika Renewables

Lafarge Egypt, the subsidiary of cement giant Holcim Group has signed a $93 million Power Purchase Agreement (PPA) with Lumika Renewables Egypt for the supply of solar energy to power its cement production plant.

The PPA is scheduled to become effective by the first quarter of 2024 and will be one of the largest commercial and industrial solar PPAs in the North African country.

The agreement by the two parties will involve development of a 50MW solar power plant. The solar energy plant will be the first such plant operated by Lumika Renewables Egypt in the country. The facility is expected to meet close to 50% of Lafarge Egypt’s Ain Al-Sokhna cement plant’s daily electricity needs.

“[The contract] aims to supply Lafarge Egypt with approximately 140 GWh worth of electricity generated through solar cells per year,” said Najib Ribi, Industrial Director at Lafarge Egypt.

With a production output capacity of 10.2 million tonnes per year, Lafarge Egypt’s Ain Al-Sokhna cement plant has annual power consumption of about 750 GWh.

Complementing Holcim’s sustainability goals

The solar energy offtake agreement by Lafarge Egypt falls in line with its parent company Holcim’s vision to promote the use of renewable energy to produce green cement, and reduce its carbon footprint.

In addition to procurement of renewable energy from Lumika Renewables to power its operations, Lafarge Egypt has also unveiled two novel green cement products: ECO Planet and ECO Planet Prime, as part of its approach to environmental sustainability. 

Lumika Renewables is a joint venture between South Africa-based industrial group Reunert and A.P. Moller Capital. The joint business was created in 2021 with an objective to develop a portfolio of cost-efficient, renewable energy solutions for commercial and industrial customers in Africa.