It is not only critical to ensure the integration of sustainable practices into the internal day-to-day operations of the organization, but to incorporate them into the business model as a means to better our communities and showcase the financial profitability in engaging this strategy. This key element of our sustainability strategy will leverage EFG Hermes’ position as the leading investment firm in the MENA region to push for a trend whereby investing in a socially conscientious way becomes an economically viable method to generate group profitability.
This relies on our talented leaders, managers, analysts, researchers to seek out creative opportunities that generate financial, social and ecological value and returns. EFG Hermes views investments in the new and renewable energy industry, which is increasingly being viewed by us as the only viable method of ensuring energy efficiency in energy strapped markets such as Egypt and Jordan.
Most recent of these investments is EFG Hermes’ late 2014 acquisition of a stake in EDPR France which has a portfolio of 33 operational wind farms with a combined gross capacity of 334 MW. The company is a subsidiary of EDP Renewables (EDPR), one of the top four global renewable energy companies that develops, constructs and operates renewable energy assets with over 8.6 GW of installed capacity across three continents.
As a participant in the Inframed Fund, EFG Hermes also holds a stake in the Jordan Wind Project Company (JWPC), which is building the 117 MW Tafila Wind Farm. The USD 290 million Tafila project will increase Jordan’s total power generation capacity by 3%, producing 400 GWh of electricity annually.
The Egyptian Refining Company, a USD 3.7 billion state-of-the-art refinery in the Greater Cairo Area, is one of the largest oil and gas projects in Egypt and the region. This ambitious project is an example of public-private partnership that addresses a critical economic need — refined fuel — while simultaneously giving rise to considerable social and environmental benefits.
EFG Hermes, via InfraMed Infrastructure Fund, has invested USD 100 million in ERC.
To ensure that it will have a minimal environmental impact and assess any needed adjustments to the design, an Environmental/Social Impact Assessment (ESIA) was undertaken to international / IFC standards. Effluent will be subject to three stages of treatment — the third biological — meeting the highest international discharge standards. Furthermore, producing in Greater Cairo, which is the largest market for oil and gas products in Egypt, reduces greenhouse gas emissions associated with transportation as well as transportation loss which is a common problem associated with the transportation and storage of petroleum products.
The community in which ERC is located also benefits from the project, as it will create 700 permanent jobs as well as 10,000 during the construction phase. Training is provided for over 2,000 community members at the Welding Training Center. In addition to this, a number of strategic community upgrading projects are being undertaken based on a needs assessment. ERC has already refurbished a school that benefits 4,000 students from the local community.
In a move that underscores the firm’s vision to promote sustainable energy, innovation, respect for the environment, and realize its strategy of investing in operational infrastructure, EFG Hermes Holding, via Vortex Energy, a managed investment vehicle, has closed a USD 208 million transaction to acquire a 49% equity stake in EDPR France’s operational wind energy portfolio. This portfolio encompasses 33 wind farms with a total capacity of 334MW in France.
This acquisition marks EFG Hermes’ first investment beyond the borders of the Middle East and Africa and its first in Europe.
Through its investment in EDPR, we have completed a modest contribution towards a future of sustainable energy, acting as a catalyst for sustainable development while simultaneously generating attractive returns for our shareholders and co-investors alike.
Tafila Wind Farm
Tafila Wind Farm is a greenfield wind energy project involving significant sustainable development and socio-economic benefits to Jordan. It is the first and the largest privately financed wind farm in the Jordan, and aims to boost the country’s renewable energy production and decrease its reliance on imported fuels. InfraMed Infrastructure Fund, in which EFG Hermes is a shareholder, is the majority investor in Tafila.
Jordan’s wind potential has been ranked as one of the most attractive in the MENA region and wind energy assessments have confirmed very strong wind potential on Tafila’s site with wind speeds averaging 7.3 m/s yielding capacity factors as high as 40%. As such, Tafila involves significant sustainable development and socio-economic benefits to the country. The investment is also an attractive opportunity to partner with an experienced developer in the largest private wind project in a country with promising renewable energy potential. The deal positions InfraMed well in terms of wider pipeline opportunities, including the Tafila expansion, as well as a number of potential projects in other target countries such as Libya.