EIB backs new USD-500m renewables fund for emerging markets

• The European Investment Bank (EIB) on Monday announced commitments of USD 100 million (EUR 97m) to Alcazar Energy Partners II, a fund that will invest in renewable resource projects in the Middle East, North Africa, Eastern Europe and also Central Asia.

The commitments include USD 25 million from the Emerging Markets Climate Action Fund, which was introduced throughout COP26 in 2021 by the EIB as well as property supervisor Allianz Global Investors, part of Germany's Allianz (ETR: ALV), along with USD 75 million from EIB Global.

EIB as well as EMCAF belong to 8 public and also private institutional capitalists that gave funds for Alcazar Energy Partners II's initial close at USD 336.6 million, according to a separate news from Alcazar Energy.

The fund has a target size of USD 500 million and also a hard cap of USD 650 million. It will supply early-stage equity financing for the advancement, building and operation of onshore wind and also solar photovoltaic or pv projects and also potentially other low-carbon modern technologies such as hydropower, biomass or battery electrical power storage.

The new vehicle is expected to support the deployment of greater than 2 GW of clean energy capacity.

The statement was made during the COP 27 climate summit in Egypt.

Alcazar Energy stated Alcazar Energy Partners II has currently authorized a memorandum of understanding (MoU) with Egypt's federal government to purchase a green hydrogen-based ammonia center that will be powered by a 1-GW renewable energy plant as well as will certainly generate 230,000 tonnes a year. This was announced as part of USD 32 billion of MoUs for green fuel projects in Egypt in August. Alcazar Energy's project has actually attracted the rate of interest of a number of European and also Asian investment quality off-takers, according to the company's announcement.