A memorandum of understanding (MoU) has been signed between Egypt and an Indian company to build a green hydrogen facility in the Suez Canal Economic Zone, a cabinet announcement reported. As per the MoU, Indian ReNew Power Private Limited (RENE.BO) will make an investment of USD 8 billion to construct a factory having a capacity of producing 20,000 tonnes of green hydrogen per year during the initial phase.

NASDAQ-listed ReNew Power has signed this pact with Egyptian government agencies and a sovereign fund. Operational capacity-wise, ReNew is the largest renewable energy company in India with 4.23 GW of wind energy assets and 5.82 GW of solar power assets. The company has recently entered into definitive agreements to acquire 527.9 MW in operating wind and solar assets.

ReNew plans to produce 2,20,000 tonnes of this clean energy per annum in Egypt over the coming years, the MoU states. The plans are likely to be financed by investors including the Goldman Sachs Group and the Abu Dhabi Investment Authority.

ReNew, the Egyptian Electricity Transmission Company, the General Authority for the Economic Zone of the Suez Canal and the Sovereign Fund of Egypt are the signatories to the MoU.

“We are pleased to partner with one of the largest renewable energy producers in India and the world, Renew Power Private Limited, as this partnership reflects the interest of global developers specialized in investing in such projects by choosing Egypt as a destination for investment in this field, due to its strategic location and renewable energy resources that enable it to transform into a regional centre for green energy," the CEO of Sovereign Fund of Egypt noted.

The Suez Canal Economic Zone assured cooperation with ReNew in this green hydrogen project that is designed to be implemented in phases and the first phase is the pilot plant with 20,000 tonnes of green hydrogen.

All the countries involved have definitive plans to substitute carbon and hydrocarbon with green hydrogen for environmental protection through decarbonization.

The government of Egypt plans to make a 40 billion dollar investment in generating green hydrogen capacity to the tune of approximately 1.6 million tonnes.

Green hydrogen is critical for decarbonising industries in the fight against climate change and we intend to be a global leader in this sector," emphasized Sumant Sinha, the Founder, Chairman and CEO of ReNew Power.