Egyptian Startup Secures $1.05M for Solar Irrigation

NoorNation, an Egyptian startup, has secured $1.05 million in seed funding, which will be utilized to broaden its solar-powered irrigation and water systems. The investors involved in this funding round include Linah Farms, Catalyst Fund, a climate-focused fund, and KBW Ventures, a Saudi venture capital firm. Following a nine-month due diligence period, Linah Farms, which was already a customer, has become a shareholder in NoorNation.

Expansion and New Contracts

NoorNation intends to leverage the newly acquired funds to amplify its operations. As part of an existing agreement with Linah Farms, NoorNation will construct five solar power stations, boasting a combined capacity of 1.1 megawatts. These stations will be situated at Linah Farms’ locations in Bahariya Oasis and Minya.

This agreement marks an extension of the partnership between NoorNation and Linah Farms, which initially began with projects aimed at reducing the agribusiness group’s dependence on diesel and grid electricity. Linah Farms had been searching for a solar energy partner for several years as it expanded its agricultural operations. In 2021 and 2022, the company started measuring its carbon footprint, a period during which all 30 wells at its 3,000-feddan Medjool date farm were powered by diesel pumps.

Proven Technology and Savings

NoorNation’s initial installation at Linah Farms was a hybrid solar-diesel system at a well approximately 1,000 meters deep. The company subsequently installed a solar-and-battery system at Linah’s palm cultivation school and a 400-kilowatt solar system at the group’s 520-room Sultan Gardens Resort in Sharm El Sheikh.

According to Ragy Ramadan, Founder and CEO of NoorNation, the solar-powered well has resulted in savings of over EGP 3 million in diesel expenses for Linah Farms. Additionally, the resort has seen a reduction of more than EGP 2.2 million in its electricity bill. These savings played a key role in Linah Farms’ decision to invest in NoorNation.

Accessibility for Smallholder Farmers

NoorNation is currently developing a pay-per-use irrigation service, designed to cater to smallholder farmers who are unable to afford the initial cost of installing solar-powered pumping equipment. Through its LifeBox system, the company installs solar equipment, facilitating the transition from flood irrigation to drip irrigation for these farmers.

Currently, three pilot projects are operational and generating revenue. One such project, located in Aswan, was developed in partnership with the World Food Programme and the Adaptation Fund. Linah Farms is expected to support the expansion of this model, alongside other partners.

Market Context and Infrastructure

The initial cost of solar equipment remains a significant barrier to adoption. Ramadan estimates that a 20-horsepower solar pumping station costs approximately EGP 1 million, making direct ownership unaffordable for many smallholders. A pay-per-use arrangement could provide farmers with access to this technology without requiring them to finance the full installation upfront.

Agriculture accounts for around 13.7% of Egypt’s GDP and 19% of its employment. The country relies heavily on the Nile for about 94% of its water needs. NoorNation argues that the use of diesel-powered pumping and inefficient irrigation methods contributes to the cost and waste associated with agricultural water use. The company estimates that approximately 95% of farmers on Egypt’s old agricultural lands still rely on diesel pumps. Its co-founder and Chief Technology Officer, Mohamed Khaled, notes that flood irrigation results in the waste of roughly 70% of Nile water.

Global Reach and Future Development

Founded in 2022, NoorNation develops and assembles its equipment at a factory in Abu Rawash. The company’s product lineup includes battery-free LifeBox units that power water pumps and desalination systems, as well as grid-connected solar installations for hotels and factories. NoorNation has completed around 66 projects with a combined capacity of 7 megawatts across 13 Egyptian governorates, serving over 5,200 feddans.