Alexandria Fertilizers Company (AlexFert), a subsidiary of Valmore Holding, has entered into a 30-year Power Purchase Agreement (PPA) with Egyptian renewable energy developer SolarizEgypt to supply its Alexandria manufacturing facility with 1 megawatt (MW) of solar power.
Under the long-term agreement, SolarizEgypt will finance, develop, own, operate and maintain the solar power plant throughout the contract period. AlexFert will purchase the generated electricity without making any upfront capital investment, allowing the fertilizer producer to secure a reliable and competitively priced source of renewable energy while reducing its dependence on electricity from Egypt’s national grid.
The solar installation is expected to generate approximately 1.58 gigawatt-hours (GWh) of clean electricity annually. This output could reduce AlexFert’s electricity consumption from the national grid by around 4.2%, supporting greater energy efficiency across its industrial operations.
The project is also expected to deliver measurable environmental benefits. According to AlexFert, the solar plant could prevent approximately 718 metric tons of carbon dioxide (CO2) emissions each year. Over the 30-year agreement, the cumulative reduction is estimated at approximately 21,528 metric tons of CO2.
SolarizEgypt develops and operates renewable energy projects in Egypt through long-term PPAs. Its portfolio includes solar installations serving El Gouna Touristic City, the El Montazah Water Desalination and Treatment Plant, and Coca-Cola facilities.
Alaa El Banna, chairman of AlexFert, described the agreement as a practical step toward improving the sustainability and efficiency of the company’s industrial activities. Jon Rokk, CEO of Valmore Holding, said the agreement reflects the group’s strategy of helping its portfolio companies build more efficient, resilient and sustainable operations.
The solar agreement follows AlexFert’s broader efforts to reduce the carbon intensity of its fertilizer production. The company recently signed a memorandum of understanding with United Energy Group (UEG) to explore the development of a green ammonia project powered by green hydrogen and renewable energy. The proposed initiative could help the company gradually transition from conventional fossil-fuel-based ammonia production toward lower-carbon manufacturing.
Founded in 2003, AlexFert is an Alexandria-based fertilizer producer. Its product portfolio includes anhydrous ammonia, which serves as an intermediate, along with granular urea and ammonium sulphate. The company operates a manufacturing facility covering approximately 110,000 square meters.
Product and Chemical Commodity Price Impact
The solar project is unlikely to create an immediate change in AlexFert’s fertilizer output, but it could gradually improve production economics by lowering exposure to conventional grid electricity costs. Greater use of renewable power may strengthen the competitiveness and sustainability of urea and ammonium sulphate production. For chemicals tracked by ChemAnalyst, the direct price impact should remain limited because the 1 MW project represents a relatively small share of AlexFert’s overall energy requirements. However, sustained adoption of renewable energy across Egypt’s fertilizer sector could reduce operating costs over the longer term. Lower production costs may create mild downward pressure on regional urea and ammonia prices if replicated at scale.
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