ReNew Power Private Limited, a subsidiary of leading renewable energy company ReNew Energy Global Plc, on November 15 signed a framework agreement with the Government of Egypt to set up a Green Hydrogen plant in the Suez Canal Economic Zone at an investment of $8 billion and a targeted annual production of 220,000 tonnes of green hydrogen. The framework agreement follows the Memorandum of Understanding (MoU) signed in July 2022.
Elsewedy Electric SAE, a leading integrated energy solutions provider in the Middle East and Africa, will be the local co-developer for the project.
The project will be implemented in phases, the first of which will be a pilot phase to produce 20,000 tonnes of green hydrogen, along with derivatives, annually. In the next phase (Phase I), the production of 200,000 tons per year of green hydrogen, along with derivatives, will be achieved, thereby bringing the project's total Green Hydrogen production capacity to 220,000 tonnes per year.
As per the framework agreement, ReNew Power will be undertaking project and site studies in the coming months to make the final investment decision (FID) over the next 12–16 months. Thereafter, the pilot phase project is expected to be commissioned in 2026.
Usufruct agreements for the project are also expected to be discussed going forward, based on which land will be allocated to ReNew Power for developing the Green Hydrogen project.
Sumant Sinha, Chairman, and Chief Executive Officer, of ReNew, 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 decarbonizing major hard-to-abate industries globally.
This Framework Agreement shows that ReNew Power, with partners such as the Government of Egypt, intends to take a pioneering and leadership role in this emerging sector- in global efforts to combat climate change. Green growth in the Middle East and Africa region is extremely important for the global economy and ReNew Power is ready to partner for this growth.”
Ahmed El Sewedy, President and CEO, Elsewedy Electric, stressed the importance of Green Hydrogen, and said: “Green Hydrogen is the catalyst for Carbon Neutrality. Therefore, we are committed to injecting more investment in the Green Hydrogen Industry.
"Partnering with one of the world’s leading renewable energy companies diversifies Elsewedy Electric’s portfolio to impact different sectors, in line with our strategy that aims at providing sustainable integrated solutions in order to support communities’ betterment, paving the way to achieving Net Zero. This comes as part of Elsewedy Electric’s long-term sustainability strategy, leveraging Egypt’s National Climate Change Strategy 2050 and supporting the global efforts to address Climate Change.”
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