With an investment of USD 8 billion, ReNew Power and Egypt have signed a framework agreement to build a green hydrogen plant in the Suez Canal Economic Zone.
According to a company statement, “ReNew Power Private Ltd, a subsidiary of ReNew Energy Global Plc (ReNew), one of the world’s leading renewable energy companies, today signed the framework agreement with the government of Egypt to establish a green hydrogen plant in the Suez Canal Economic Zone with a USD 8 billion investment and a targeted annual production of 2,20,000 tonnes of green hydrogen.”
The Memorandum of Understanding (MoU) agreed upon in July of this year is followed by a framework agreement.
Phases of this project’s implementation are planned, with the first one being a pilot phase that will yearly create 20,000 tonnes of green hydrogen and its derivatives.
The project’s overall capacity for producing green hydrogen will increase to 2,20,000 tonnes per year when the production of 2,00,000 tonnes of green hydrogen annually is accomplished in the following phase (Phase I).
ReNew Power will continue project and site investigations in the upcoming months based on the framework agreement and is anticipated to make the final investment decision (FID) during the following 1216 months.
In 2026, the project’s pilot phase is anticipated to be put into operation. Moving forward, it is also anticipated that usufruct agreements for the project will be discussed, based on which property will be given to ReNew Power for the development of the green hydrogen project.
Elsewedy Electric S.A.E. (Elsewedy), a top provider of integrated energy solutions in the Middle East and Africa, and ReNew Power have teamed to develop the project locally.
“This framework agreement illustrates that ReNew Power, alongside partners like the government of Egypt, intends to play a pioneering and leadership position in this developing sector in global efforts to tackle climate change,” stated Sumant Sinha, Chairman and Chief Executive Officer of ReNew.
“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 to support communities’ betterment, paving the way to achieving net zero,” said Eng. Ahmed El Sewedy, President and CEO of Elsewedy Electric, in a statement highlighting the significance of green hydrogen.
One of the biggest independent producers of power from renewable sources worldwide is ReNew. Utility-scale wind, solar, and hydroelectric projects are developed, constructed, owned, and operated by ReNew. ReNew had a gross portfolio of 13.4 GW renewable energy projects in India as of October 10, 2022, including commissioned and committed projects.
Elsewedy Electric operates across Africa, the Middle East, and Asia in five business segments: wire, cable, and accessories; electrical products; engineering & construction; digital solutions; and infrastructure investments. Elsewedy Electric has 17,000 employees, operates 48 foreign offices, has 31 production sites, and exports to more than 110 nations.
In December 2021, Elsewedy Electric reported revenue of 60.5 billion Egyptian pounds and a net profit of 3.5 billion Egyptian pounds.
