ReNew Power & Egyptian Govt Sign Framework Agreement for Green Hydrogen Plant

Renewable energy conglomerate, ReNew Power and the Egyptian government have signed a framework agreement for the construction of an $8 billion green hydrogen plant in the Suez Canal Economic Zone.

The green hydrogen production capacity of the plant is anticipated to be 220,000 tonnes per year. Following the Memorandum of Understanding (MoU) signed in July of this year, the framework agreement was created.

“The initial stage of this project’s implementation is a pilot phase that will create 20,000 tonnes of green hydrogen and its derivatives annually. The project’s overall capacity to produce green hydrogen will increase to 220,000 tonnes per year when the production of 200,000 tonnes per year of green hydrogen and derivatives is accomplished in the following phase (Phase I),” according to a statement from the firm.

ReNew Power will continue project and site investigations based on the framework agreement in the upcoming months and is anticipated to make the Final Investment Decision (FID) during the following 12 to 16 months. It stated that the pilot phase project is anticipated to be operational in 2026.

Elsewedy Electric S.A.E., an integrated energy solutions supplier in the Middle East and Africa, and ReNew Power have teamed to develop the project locally.

Chairman and Chief Executive Officer of ReNew, Sumant Sinha, stated: “Green hydrogen is essential for decarbonizing significant, globally competitive sectors. This framework agreement demonstrates ReNew Power’s intention to take a leading and innovative role in this developing industry—in efforts to tackle climate change on a global scale—along with partners like the Egyptian government. The Middle East and Africa region’s green growth is crucial to the world economy, and ReNew Power is prepared to collaborate on it.”

“Green hydrogen is the catalyst for carbon neutrality. As a result, we are determined to increase investment in the green hydrogen sector. Elsewedy Electric’s long-term sustainability strategy, which builds on Egypt’s National Climate Change Strategy 2050 and supports international efforts to combat climate change, includes this.” said Ahmed El Sewedy, president and chief executive officer of Elsewedy Electric.

A Memorandum of Understanding (MoU) was signed in July by ReNew, the Egyptian Electricity Transmission Company, the General Authority for the Economic Zone of the Suez Canal, and the Sovereign Fund of Egypt.

Recently, ReNew Power received a loan/ green project finance from Bank of America totaling roughly Rs 800 crore, the lender’s first local project financing agreement in the renewable energy industry after a protracted absence.