By Faridat Salifu
British oil and gas giant BP, has set its sights on Egypt’s growing green hydrogen industry, following in the footsteps of French counterpart, TotalEnergies.
BP recently inked a deal with Emirati energy company Masdar and a group of Egyptian investors, positioning itself to play a significant role in the sector’s development.
As the main developer and operator, BP will spearhead the consortium’s projects. This collaboration aims to consolidate their green hydrogen initiatives into a single, large-scale, multi-phase project focused on green hydrogen and its derivatives for export.
The consortium has already signed a framework agreement with the Egyptian government to kick off studies and activities assessing the technical and commercial viability of the project.
“We welcome BP’s entry into the consortium, which builds on the well-established relationships between our companies and supports Masdar’s ambition to drive the development of green hydrogen worldwide,” said Mohammad Abdelqader El Ramahi, Masdar’s Head of Green Hydrogen.
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The agreement was signed in the presence of key Egyptian government officials, including Prime Minister Moustafa Madbouly, Minister of Electricity and Renewable Energy Mohamed Shaker, and Minister of Planning and Economic Development Hala El-Said.
In 2022, the consortium secured approval from Cairo to build facilities in the Suez Canal Economic Zone, converting 4 GW of clean electricity into hydrogen via water electrolysis.
Masdar cited Egypt’s rich potential for renewable energy, particularly solar and wind power, as a key factor in its investment decision. In the first phase of the project, Masdar, Infinity, and Hassan Allam will aim to produce 100,000 tonnes of e-methanol annually.
This green fuel, made by combining carbon dioxide and hydrogen, could replace traditional energy sources like petrol and diesel, offering a sustainable option for decarbonizing maritime transport.
By 2030, the consortium plans to expand its facilities’ capacity in the Suez Canal Economic Zone, targeting production of 480,000 tonnes of hydrogen and 2.3 million tonnes of green ammonia for both export and local industries.
“This new energy venture could significantly impact the global energy landscape and help reduce carbon emissions,” noted Amr Allam, joint managing director of Hassan Allam Holding.
