ReNew Power on Tuesday announced that it has signed a framework agreement with Egypt to set up a green hydrogen plant in the Suez Canal Economic Zone with an investment of USD 8 billion.
"ReNew Power Private Ltd, a subsidiary of ReNew Energy Global Plc (ReNew), one of the leading renewable energy companies globally, today signed the framework agreement with the government of Egypt to set up a green hydrogen plant in the Suez Canal Economic Zone with an investment of USD 8 billion and a targeted annual production of 2,20,000 tonnes of green hydrogen," a company statement said.
Framework agreement follows the Memorandum of Understanding (MoU) signed in July this year.
This project is scheduled to be implemented in phases, the first of which is a pilot phase to produce 20,000 tonnes of green hydrogen, along with derivatives, annually.
In the next phase (Phase I), the production of 2,00,000 tonnes per year of green hydrogen, along with derivatives, will be achieved thereby bringing the project's total green hydrogen production capacity to 2,20,000 tonnes per year.
Based on the framework agreement, ReNew Power will be further undertaking project and site studies in the coming months and is expected to make the final investment decision (FID) over the next 1216 months.
The pilot phase project is expected to be commissioned in 2026. Usufruct agreements for the project are also expected to be discussed going forward, basis which land shall be allocated to ReNew Power for developing the green hydrogen project.
ReNew Power has partnered with Elsewedy Electric S.A.E. (Elsewedy), leading integrated energy solutions provider in the Middle East and Africa, which will be the local co-developer for the project.
Sumant Sinha, Chairman and Chief Executive Officer, ReNew, said in the statement, "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."
Eng. Ahmed El Sewedy - President and CEO, Elsewedy Electric, stressed the importance of green hydrogen, saying: "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."
ReNew is one of the largest renewable energy independent power producers globally. ReNew develops, builds, owns and operates utility-scale wind energy, solar energy and hydro projects. As of October 10, 2022, ReNew has a gross total portfolio of 13.4 GW of renewable energy projects across India, including commissioned and committed projects.
Elsewedy Electric operates in 5 business lines: wire, cable, & accessories, electrical products, engineering & construction, digital solutions, and infrastructure investments across Africa, Middle East and Asia. Elsewedy Electric employs 17,000 people, operating in 48 international offices and 31 production facilities, exporting to over 110 countries worldwide.
Elsewedy Electric announced a revenue of 60.5 billion Egyptian pound with net profit of 3.5 billion Egyptian pound in December 2021.