Egypt and BP sign a memorandum of understanding to establish a renewable hydrogen production facility.
A new partnership
Egypt and BP agree on a large-scale renewable hydrogen production facility project. Thus, BP will evaluate the technical and commercial feasibility of developing an export center. The company will explore sites with high potential in the country for renewable energy.
Anja-Isabel Dotzenrath, BP’s executive vice president for gas and low-carbon energy, says:
“Egypt has world-class renewable energy resources and we look forward to working with the government to explore how we can support its ambitious low-carbon strategy.”
The signatories of the agreement are BP, the Egyptian New and Renewable Energy Authority and the Egyptian Electricity Transmission Company. the General Authority of the Suez Canal Economic Zone and the Egyptian Sovereign Wealth Fund for Investment and Development (TSFE) also signed the agreement.
Ayman Soliman, CEO of TSFE, says the MoU builds on the fund’s renewable hydrogen portfolio. Moreover, it builds on its “mandate to transform Egypt into a regional renewable energy hub”. Hydrogen was also a major theme at the UN Climate Change Conference hosted by Egypt in Sharm el-Sheikh.
Multiple projects
BP CEO Bernard Looney attended COP27 as a delegate from Mauritania. The company was signing a separate memorandum of understanding with the country on renewable hydrogen production at the conference. In addition, the European Union signed strategic hydrogen partnerships with Kazakhstan, Namibia and Egypt.
The European Union is thus seeking to diversify its suppliers. The objective is to meet its plan to import 10 million tons per year by 2030. Fertiglobe led a consortium that commissioned the first phase of the €100 million Green hydrogen plant.
The hydrogen plant is supported by Egypt’s sovereign wealth fund. BP is developing a portfolio of renewable and low-carbon hydrogen projects around the world. The company is present in the Netherlands, Germany, Spain, the United States and Australia.
Europe and Asia-Pacific are the main importers of hydrogen and its derivatives. Thus, European and Asia-Pacific buyers are sourcing from potential producing regions. These include the Middle East, Australia and Latin America.
