Lafarge Egypt signs a solar offtake agreement with Lumika Renewables

Lafarge Egypt, a 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 beginning in the first quarter of 2024.

Lumika Renewables is a joint venture between the South African industrial group Reunert and the Danish investment firm A.P. Moller Capital. The joint venture was created in 2021 with the objective of developing a portfolio of cost-effective, renewable energy solutions for commercial and industrial clients across Africa. The solar energy offtake agreement between Lafarge Egypt and Holcim is consistent with Holcim's mission to encourage the use of renewable energy to produce green cement and minimize the company's carbon impact.

The agreement involves the construction of a 50MW solar power plant, making it one of the largest commercial and industrial solar PPAs in the country. Lumika Renewables will operate the solar energy facility, its first in Egypt. It is anticipated that the facility will provide the plant with about 140 GWh of solar-generated electricity annually, accounting for approximately 20% of the annual total electricity usage. This PPA demonstrates Lafarge's commitments to reducing its C02 emissions and reducing the environmental impact of its business.