8th Dec 2022 08:43
(Alliance News) - BP PLC on Thursday said it signed a memorandum of understanding with the Egyptian government to explore the potential for a new green hydrogen production facility in the North African country.
The London-based oil and gas company said the agreement was signed with the Egyptian new and renewable energy authority, the national electricity transmission company, the general authority for the Suez Canal Economic Zone, and the sovereign fund of Egypt for investment and development.
Under the deal, BP will carry out several studies to evaluate the technical and commercial feasibility of developing a large-scale green hydrogen export hub. Multiple locations in Egypt will be considered, targeting the best-in-class resources.
Green hydrogen is produced by the electrolysis of water, powered by renewable energy.
"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," said Anja-Isabel Dotzenrath, executive vice president of gas & low-carbon energy at BP.
Added Ayman Soliman, chief executive officer of the sovereign fund of Egypt for investment and development: "Transitioning into a low-carbon energy system is no longer an option but a necessity, as reaffirmed by the whole world during COP27. We are proud of this MoU with BP, demonstrating our role as a catalyst for that transition, providing investors with a wealth of renewable energy sources, an optimal location for exporting and an investor-friendly ecosystem. It builds on the sovereign fund of Egypt for investment and development's green hydrogen portfolio and complements our strategy and mandate to transform Egypt into a regional hub for green energy."
BP said it is working on growing portfolio options for green and blue hydrogen projects in advantaged markets across the world, including potential developments in the UK, the Netherlands, Germany, Spain, the Middle East, the US and Australia.
Shares in BP were up 1.1% to 469.35 pence each in London on Thursday morning.
By Greg Rosenvinge, Alliance News reporter
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