One step closer for the Zafarana wind farm acquisition: Danish shipping giant Maersk has reached a preliminary agreement with Egypt on the acquisition of a 51% stake in the 545 MW Zafarana wind farm, a government source told Enterprise Climate.

What we know: The Danish firm will be acquiring the operating phases of the farm, leaving remaining phases still under development up for grabs, according to the government official. The government has not yet received offers from investors for the remaining phases, he added.

REMEMBER- Egypt is selling off shares in the state-owned 580 MW Gabal El Zeit wind farm along with the state-owned 545 MW Zafarana wind farm as part of a sale containing over 30 companies and assets earmarked for privatization by the government. The sale comes under an ambitious plan by the government to bring in USD 5 bn in investment through the privatization of state-owned companies and assets.

There were already indications: An updated state ownership policy document that was leaked to the press in August showed the government agreeing in principle to sell a stake to Maersk. The Danish firm will receive the first four phases of the power plant, while the remaining four phases will be allocated to investors for green hydrogen projects, the document showed.

A celebratory handshake soon? Final agreements are expected to be signed in December, the source tells Enterprise. The financial agreements have not been finalized amid worries by investors regarding further FX fluctuations, he added.

Maersk has big plans for Egypt: Maersk is seeking half of the asset to help produce green methanol in Egypt. The company last week signed a framework agreement with the government for a green fuel project in the Suez Canal Economic Zone, with the first phase requiring USD 3 bn in investment.