Announcement comes at signing of retainer letter for innovative green hydrogen project
SHARM EL-SHEIKH, Egypt – Delivering on President Biden’s 2021 call to catalyze more climate financing for developing countries, U.S. International Development Finance Corporation (DFC) today announced it committed more than $2.3 billion in climate-linked development projects during Fiscal Year 2022. As part of its prioritization of climate-linked investments, DFC is supporting new clean energy solutions that also provide reliable, affordable energy to help developing countries meet rising demand and support economic development. Consistent with this focus, DFC CEO Scott Nathan and Scatec CEO Terje Pilskog today signed a retainer letter to explore potential financing support for a new green hydrogen project in Egypt that has the potential to demonstrate an innovative, long-term green energy solution.
“I am proud to announce that DFC committed more than $2.3 billion in financing over the past fiscal year to climate-linked projects around the world,” said DFC CEO Scott Nathan. “This record number is a reflection of the important priority that DFC places on climate financing. Today’s retainer letter with Scatec is a great example and signals our intent to explore financing for innovative projects like this new green hydrogen facility in Egypt.”
Climate change has a disproportionate impact on developing countries, which are often more vulnerable to its impacts because of persistent challenges with poverty, food insecurity, lack of access to energy, and digital connectivity. DFC’s climate-linked investments focus on combating the climate crisis through mitigation, adaptation, and resilience projects that also create a development impact in climate-impacted countries.
Key highlights from DFC’s newest climate-linked investments include:
- Investing $50 million in a green note purchase by Virtuo Finance to on-lend to six solar projects in Egypt. The green note issuance brings in institutional investors and demonstrates a maturation for renewable energy financing in Egypt.
- Expanding clean transportation in India through a $9 million loan to Yulu Bikes Private Ltd. Through its new e-Mobility financing team, DFC is investing more in zero emissions transportation projects across the value chain – from vehicle production to mobility-as-a-service businesses around the world.
- Supporting renewable energy and securing supply chains through a DFC commitment to provide an up to $500 million loan to First Solar, a competitive U.S. solar panel manufacturer based in Tempe, AZ, to be used for the construction and operation of a new manufacturing facility in Tamil Nadu, India. The project promotes DFC’s commitment to climate change mitigation while improving solar supply chains and mobilizing the industry to take up better standards that align with U.S. values.
- Promoting conservation in Mexico, Peru, and Colombia via a $5 million loan portfolio guaranty for Conservation International Foundation to conserve, restore, and sustainably manage critical ecosystems. Conservation-focused businesses contribute to sustainable economic growth while preserving the environment to help mitigate further warming.
- Supporting reliable, affordable, clean energy in Malawi with a nearly $25 million direct investment in Golomoti Solar to finance a 20-megawatt (MW) solar power plant and 5MW/10 megawatt-hours battery energy storage system in Malawi’s Dedza district. Grid-connected, reliable renewable and energy storage projects are key to supporting Africa’s economic development in a sustainable, climate-friendly way.
U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.