Bp signed a memorandum of understanding with the Egyptian government under which it will explore the potential for establishing a new green hydrogen production facility in the country.
The MoU was signed by bp, the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), the Suez Canal Economic Zone General Authority (SCZONE) and the Egyptian Sovereign Wealth Fund for Investment and Development (TSFE).
As part of the MoU, BP will conduct several studies to assess the technical and commercial feasibility of developing a large-scale multi-phase green hydrogen (gH2) export hub in Egypt. It is expected that high potential locations across Egypt will be considered for the feasibility study, targeting best-in-class resources. Green hydrogen is produced by electrolysis of water, fuelled by renewable energy.
Anja-Isabel Dotzenrath, executive vice president of gas and low carbon energy at bp, said: "bp is proud of its long history in Egypt and its important role in the country's energy industry. Egypt has world-class renewable energy resources, and we look forward to working with the government to explore how we can support its ambitious low carbon strategy.
Ayman Soliman, Managing Director of TSFE, said: "The transition to a low-carbon energy system is no longer an option but a necessity, as reaffirmed by the world at COP27. We are proud of this Memorandum of Understanding with bp, demonstrating our role as a catalyst for this transition, offering investors a multitude of renewable energy sources, an optimal location for export and an investor-friendly ecosystem. It builds on TSFE's green hydrogen portfolio and complements our strategy and mandate to transform Egypt into a regional green energy hub.
Nader Zaki, bp's regional president for the Middle East and North Africa, said: "Expanding the scope of our operations in Egypt is a testament to bp's long-term commitment to Egypt. This MoU builds on Egypt's efforts to be a regional energy hub and we are pleased to be a strategic partner in supporting the country's green energy transition plans.
Hydrogen is one of bp's five energy transition growth drivers. Globally, bp is working on a large and growing portfolio of options for developing green and blue hydrogen projects in favoured markets around the world, including potential developments in the UK, the Netherlands, Germany, Spain, the Middle East, the US and Australia.