BP has signed an MoU with the Government of Egypt, to explore the possibility of building a new green hydrogen production facility in Egypt.

According to a press release from BP, the MoU was signed by the General Authority for Suez Canal Economic Zone (SCZONE), the Egyptian Electricity Transmission Company (EETC). As well as the Egyptian New and Renewable Energy Authority (NREA) and the Sovereign Fund of Egypt for Investment and Development (TSFE).

In accordance with the MoU, BP will conduct a number of studies. This is in a bit to assess the technical and financial viability of establishing an extensive, multi-phase green hydrogen production facility in Egypt. In order to target best-in-class resources, it is envisaged that high-potential locations throughout Egypt would be taken into account. As part of the feasibility study.

Also Read: ReNew plans to set up green hydrogen plant in Egypt

Remarks on the proposed green hydrogen production facility in Egypt

BP’s vice president of gas and low-carbon energy, Anja-Isabel Dotzenrath, said, “We look forward to engaging with the government. To determine how we can help its ambitious low-carbon agenda given that Egypt has top-notch renewable energy resources.”

Ayman Soliman, TSFE’s chief executive officer, said, “The world reiterated at COP27 that switching to a low-carbon energy system is now a need rather than a choice. With a multitude of renewable energy sources, a prime location for exporting, and an investor-friendly ecosystem. We are happy with this MoU with bp, which shows our function as a catalyst for that transformation. It expands on TSFE’s green hydrogen portfolio. And aligns with our mission and vision to make Egypt a regional leader in renewable energy.”

Furthermore, hydrogen is one of bp’s five energy transition growth engines. Globally, bp is engaged in green and blue hydrogen projects in the US. As well as Australia, the Middle East, Germany, Spain, the UK, and the Netherlands.

According to Reuters, BP is investigating the possibility of creating green hydrogen in Oman and also considering projects in Mauritania.