Toyota Tsusho Corporation ("Toyota Tsusho") announced today that together with Eurus Energy Holdings Corporation ("Eurus Energy"), one of the Toyota Tsusho Group companies engaged in the wind power business, Toyota Tsusho will construct, own and operate a wind power plant with a power generation capacity of approximately 500 MW in the Arab Republic of Egypt ("Egypt"), and will invest in an independent power producer (IPP) for the sale of the electricity.

This is the second wind power project for the Toyota Tsusho Group in Egypt.

Electricity demand in Egypt is expected to grow steadily, and the construction of new power plants and expansion of existing sites are taking place to meet the strong demand for electricity. In addition, the adoption of renewable energy is being promoted in order to balance the ratio of power sources, which has previously been heavily dominated by thermal energy. According to current plans, 42% of total power is planned to be generated from renewable energy sources by 2035.

The Toyota Tsusho Group's electricity business in Egypt has been contributing to the expansion of renewable energy in the country by participating in power plant and substation construction projects since the 1990s. Also, in 2017, Toyota Tsusho invested in Ras Ghareb Wind Energy SAE, the country's first wind IPP project (262.5 MW, commercial operation started in 2019).

In this project, the four companies, Toyota Tsusho, Eurus Energy, Engie SA (France), and a construction company, Orascom Construction PLC (Egypt), will promote the project through a joint venture company, Red Sea Wind Energy SAE.

The power plant will be located in the Gulf of El Zayt along the banks of the Gulf of Suez, which has good wind conditions throughout the year and is where Ras Ghareb Wind Energy's wind power plant is also located. The construction of the power plant is scheduled to start in March 2023, followed by the launch of commercial operation in August 2025, and the plant will be operated for 25 years thereafter.

Toyota Tsusho will continue to contribute to the expansion of renewable energy and the economic development in Egypt through the development of this project in cooperation with Eurus Energy.

Operating company name	Red Sea Wind Energy SAE
Location	Arab Republic of Egypt
Business description	Generation and sale of wind power
Investment ratio	Toyota Tsusho Group 40% (Toyota Tsusho 20%; Eurus Energy 20%) Engie SA 35% Orascom Construction SAE 25%
Power generation capacity	Approx. 500 MW (6 MW ｘ 84 stations)
Electricity purchaser	Egyptian Electricity Transmission Company
Total project cost	Approx. USD 660 million (approx. 86 billion yen)
Financial group	Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), Sumitomo Mitsui Banking Corporation, Norinchukin Bank, Societe Generale (France), European Bank for Reconstruction and Development
Start of commercial operation	Scheduled for August 2025