BP, a multinational oil and gas company, and the Government of Egypt have signed a memorandum of understanding (MoU) for the exploration of the potential for establishing a new green hydrogen production facility in the country.
The MoU was signed by BP, Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), the General Authority for Suez Canal Economic Zone (SCZONE), and the Sovereign Fund of Egypt for Investment and Development (TSFE).
Under the MoU, BP is set to carry out several studies to evaluate the technical and commercial feasibility of developing a multi-phase, large-scale green hydrogen (gH2) export hub in Egypt. High-potential locations across Egypt will be considered as part of the study.
“BP is proud of our long history in Egypt and significant 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,” Anja-Isabel Dotzenrath, BP’s Executive Vice President of Gas and Low Carbon Energy, said.
”Expanding the remit of our business in Egypt is a testament to BP’s long-term commitment to Egypt. This MoU builds upon Egypt’s endeavours to be a regional energy hub and we are glad to be able to be a strategic partner to support the country’s green energy transition plans,” Nader Zaki, BP’s regional president, Middle East and North Africa, said.
In Egypt, through the years, BP invested over $35 billion. The company operates the West Nile Delta (WND) gas development and has a strong presence in the East Nile Delta through its Pharaonic Petroleum Company (PhPC), joint venture, and other partners’ operated assets. BP said that, currently, it produces around 70% of Egypt’s gas.
Hydrogen is one of BP’s five energy transition growth engines, and globally, the company is working on a portfolio of options for the development of green and blue hydrogen projects in advantaged markets worldwide, including potential developments in the UK, the Netherlands, Germany, Spain, the Middle East, US, and Australia.
In November, BP signed MoU with the Government of Mauritania to explore the potential for large-scale production of green hydrogen in the country.
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