Singapore firm to build US$150m solar cell factory in Egypt

Singapore-based solar products company Elite Solar has announced plans to build a solar photovoltaic (PV) cell manufacturing and module assembly facility in Egypt’s Suez Canal Economic Zone. The project, valued at over US$150m, was unveiled during the recent Forum on China-Africa Cooperation (FOCAC) in Beijing. The factory will be located within the Chinese-backed TEDA industrial estate.

Covering 78,000 m², the facility will be developed in two phases. The first phase, scheduled for completion by September 2025, will see the establishment of a 2 GW solar cell production line, with plans to scale up production to 8 GW. Once fully operational, the facility is expected to generate over US$190m in annual sales.

The solar PV module manufacturing process begins with polysilicon production, where raw silicon is purified and melted into solid blocks. These blocks are then sliced into thin sheets called wafers, which are the foundation for solar cells. The wafers are treated and turned into solar cells, which can convert sunlight into electricity, before being assembled into modules that form the panels seen at solar farms.

This new venture, expected to create 600 jobs, will complement Elite Solar’s existing manufacturing operations in Indonesia and Vietnam. While a portion of the output will meet Egypt’s growing demand for solar energy, a significant share will be exported, particularly to the United States.

The solar PV sector is a key focus for the Suez Canal Economic Zone, a 455 km² area along the waterway connecting the Mediterranean Sea to the Red Sea. Businesses in the zone benefit from access to six seaports and a range of fiscal incentives, including 0% customs duties on imported project-related equipment and re-exports, as well as exemptions from value-added tax (VAT) on raw materials and inputs. Companies operating in the zone are also eligible for income tax reductions for up to seven years.

Egypt ranks as the top African country for solar PV manufacturing feasibility, according to the Africa Renewable Energy Manufacturing report by Sustainable Energy for All. This is driven by the country's established manufacturing base, adequate infrastructure, and the capabilities of its labour force. Egypt's legal framework for renewable energy and its position as one of Africa’s largest exporters further bolster its appeal as a solar manufacturing hub. The report suggests that African solar PV manufacturing could initially focus on cell manufacturing and module assembly, which involve less technological and chemical complexity. Polysilicon and wafer production, being more energy-intensive and technically demanding, could be introduced later as other manufacturing steps scale up.

 

References

‘Feature: TEDA, signature project boosting high quality China-Egypt BRI cooperation’, Xinhua, 15 July 2024

‘EliTe Solar to establish 8 GW solar manufacturing hub in Egypt’, PV Magazine, 06 September 2024

‘SCZONE signs new contracts for 6 Chinese projects with total investments exceeding $1.067 billion’, Suez Canal Economic Zone, 08 September 2024

‘Egyptian Prime Minister meets with Qu Defu, chairman of TEDA Holding, and witnesses the signing of investment projects in TEDA Cooperation Zone’, TEDA Investment Holding Co, 09 September 2024

‘EliTe Solar to establish 8 GW solar manufacturing hub in Egypt’, EliTe Solar, 10 September 2024

‘EliTe Solar Boda New Energy signs Egypt project: Promoting the rise of new Energy industry in the Middle East’, China-Africa TEDA Investment Co, 11 September 2024

‘EliTe Solar to build 8GW solar manufacturing hub in Egypt’, Energy & Utilities, 13 September 2024

‘Africa Renewable Energy Manufacturing’, Sustainable Energy for All, Accessed 04 October 2024

‘About EliTe Solar’, EliTe Solar, Accessed 04 October 2024