Egypt Sets Sail For The Achievement Of Carbon Neutrality
…Signs pact for 220,000 tons of green hydrogen
Egypt has signed a framework agreement for the development, financing, construction, operation and maintenance of a green hydrogen project. Officials say the signing is a step towards the country’s achievement of carbon neutrality.
The project is in line with Egypt’s National Green Hydrogen Strategy issued during COP27. Initially, a pilot electrolysis plant is expected to produce 20,000 tons of green hydrogen annually.
The framework agreement was signed by integrated energy and infrastructure solutions provider in the Middle East and Africa, Elsewedy Electric, in partnership with ReNew Power Private Limited, a global renewable energy company.
For the next phase, the annual output of the plant will be raised by up to 200,000 tons of green hydrogen, bringing the total production to 220,000 tons.
During the signing ceremony, the co-developers announced that the cooperation entails the development, financing, construction, operation and maintenance of a green hydrogen facility that will aim to produce 220,000 tons of green hydrogen annually to be implemented in different stages.
The Framework Agreement was entered into with The Sovereign Fund of Egypt Infrastructure & Utilities Sub Fund, New and Renewable Energy Authority Egyptian Electricity Transmission Company and The General Authority for Suez Canal Economic Zone.
Based on the Framework Agreement, the partners will undertake project and site studies in the coming months and are expected to make the Final Investment Decision over the next 12–16 months.
Thereof, the pilot phase project is expected to be commissioned in 2026. Usufruct agreements for the project are also expected to be discussed going forward.
Land shall be allocated to the partners for developing the Green Hydrogen project and the renewable energy resources needed to power the project.
During the signing ceremony, president and CEO of Elsewedy Electric, Ahmed El Sewedy, stressed the importance of Green Hydrogen, saying: “Green Hydrogen is the catalyst for carbon neutrality. Therefore, we are committed to injecting more investment into this industry.”
On his own side, the chief executive officer of ReNew, Sumant Sinha, said: “We are proud to move forward in our partnership with Egypt as it shows global leadership in taking on the existential threat of climate change. Green hydrogen is critical for decarbonising major hard-to-abate industries globally.”
By Bosco Anayo