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Egypt has signed a memorandum of understanding (MoU) with an Indian company ReNew Power to build a green hydrogen factory in Egypt. The Indian company plans to build the project in the Suez Canal Economic Zone, the Egyptian embassy in New Delhi said in a Facebook post.
ReNew, which is backed by investors such as Goldman Sachs Group Inc. and Abu Dhabi Investment Authority will look to produce 220,000 tonnes annually of clean fuel in Egypt over the next few years, Chairman Sumant Sinha stated in a text message.
The total investment of the project is said to be $8 billion.
These initiatives are part the company’s plan to diversify its renewable power business through projects within the green hydrogen or energy storage sectors.
ReNew, backed by investors including Goldman Sachs Group Inc and Abu Dhabi Investment Authority, will be looking to produce 220,000 tonnes of the clean fuel annually in Egypt in the coming years, Chairman Sumant Sinha said in a text message.
Earlier, Indian Oil Corporation Ltd., (IndianOil), the country’s top refiner and fuel retailer, Larsen & Toubro (L&T), India’s premier engineering, construction and IT/TS services conglomerate, and ReNew Power (ReNew) India’s leading renewable energy company, announced signing of binding term sheet for the formation of a Joint Venture (JV) company to develop the nascent green hydrogen sector in India.
The tripartite venture is a synergistic alliance that brings together the strong credentials of L&T in designing, executing, and delivering EPC projects, IndianOil’s established expertise in petroleum refining along with its presence across the energy spectrum, and the expertise of ReNew in offering and developing utility-scale renewable energy solutions.
Egypt will host the UN climate conference COP27 in this year. The government has created a hydrogen strategy as part its ambitious energy transition plans. It plans to make renewable energy 42% of its electricity mix by 2035.