BP p.l.c. joins Egypt green hydrogen consortium
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Stakes raised for ambitious multi-phased gH2 project with newest player swelling Masdar, Hassam Allam Utilities and Infinity Power consortium capabilities as framework agreement signed with Egyptian government.
Under the new joint development agreement (JDA), bp will joins forces with the existing tripartite consortium comprising Masdar, Hassan Allam Utilities and Infinity Power to explore potential development of a multi-phase green hydrogen (gH2) project in Egypt.
The agreement names bp as the main developer and project operator, acting on behalf of the consortium, with all partners set to combine their respective gH2 projects at the same time as studying feasibility for an export-focused, single large-scale, multi-phase gH2 project.
A Framework Agreement (FWA) has already been signed with the Egyptian government to undertake a series of relevant studies and activities in order to evaluate the project’s technical and commercial feasibility.
The FWA was signed on the sidelines of the recent Egypt-EU Investment Conference by consortium representatives Nader Zaki, bp's Regional President for the Middle East and North Africa; Andreas Bieringer, Director of Green Hydrogen Business Development and Commercial, Masdar; Karim Hefzy, Chief Operating Officer, Hassan Allam Utilities; and Mohamed Mansour, Chairman of Infinity Power.
It was inked in the presence of Dr Moustafa Madbouly, Prime Minister of Egypt; Dr Mohamed Shaker, Minister of Electricity and Renewable Resources; and Dr Hala El-Said, Minister of Planning and Economic Development.
Commenting on the new agreement, bp’s Zaki said: "The diverse experiences of partners in energy projects present a great opportunity for regional cooperation and accessing global markets, fundamentally supporting Egypt's energy transition plans."
Welcoming bp to the consortium, Mohammad Abdelqader El Ramahi, Chief Green Hydrogen Officer, Masdar, said: “We already have plans to develop green hydrogen projects in Egypt and this agreement reinforces Masdar and the UAE's commitment to Egypt to realise its massive clean energy and green hydrogen potential, alongside our Africa renewable energy champion IPH."
Amr Allam, Co-CEO Hassan Allam Holding, added: “Joining forces with bp, Masdar, and Infinity Power in this consortium is a significant step towards advancing the development of green hydrogen and anchoring Egypt as a key player in this sector.
The consortium’s long-term vision was highlighted by Mohamed Ismail Mansour, Chairman of Infinity Power. He said: “Bringing another partner on board highlights the ambition of our consortium and our commitment to collaborating and innovating to bring about new green investment in Africa. Our track record delivering large scale projects in Egypt and across the continent will give us essential experience to help deliver on this exciting and innovative project.
“Our combined local and global expertise will create economic opportunities and contribute to a cleaner and greener future for Egypt and help to decarbonise hard-to-abate sectors globally relying on fossil fuels.”
Nayer Fouad, CEO of Infinity Power added: “We know Africa has abundant renewable resources, and this hydrogen export hub will take advantage of these resources and bring environmental and economic benefits to Egypt and other nations. Hydrogen power is an incredibly exciting technology, and this export hub can help to power green industry in Africa and beyond and strengthen Egypt’s role as a leader in green power.”
His sentiments were endorsed by Felipe Arbelaez, Senior Vice President, Hydrogen and CCS at bp, who noted: “Hydrogen has a role to play in the future of global energy. We look forward to working with our partners to try to unlock hydrogen's potential in Egypt's energy story."
In Q1 2024, Egypt’s government signed a total of seven memoranda of understanding (MoU) with international developers to establish a number of green hydrogen and clean energy projects in the Suez Canal Economic Zone. Valued at approximately US$41 billion, the MoUs will see phased investment over a 10-year period for projects starting with a US$12 billion pilot programme followed by further investment of up to US$29 billion for subsequent phases.
According to previous statements made by Egypt’s New and Renewable Energy Authority (Nrea), the country aims to produce up to 1.5 million tonnes of green hydrogen per annum by 2030, growing to 5.8 million tonnes by 2040.
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