Egypt-based Elsewedy Electric plans to build two 500 MW wind farms in cooperation with Marubeni Corporation of Japan, with investments of up to €500 million ($596 million), a report said.

Negotiations underway with the New and Renewable Energy Authority (NREA) to allocate land for the two power plants, Daily News Egypt reported, citing sources at the company.

The company is choosing between a plot in the Gulf of Suez and another west of the Nile, according to the report.

The sources added that the price of energy produced from the two wind stations will not exceed 3.8 cents per kW, which is the value contracted by the Egyptian Electricity Holding Company in alliance with Toyota, Orascom, and GD France.

Elsewedy and Marubeni will start negotiations with banks to finance the two projects after obtaining the land, the report quoted the sources as saying.

Meanwhile, Elsewedy Electric has stopped all plans for six wind stations in the Red Sea governorate and will not implement them, the sources said.