ReNew Power and Elsewedy to develop green hydrogen plant

ReNew Power, India’s largest renewables company, will invest $8bn in a green hydrogen plant in the Suez Canal following an agreement with the Egyptian government.

A green hydrogen plant is planned for the Suez Canal, following a 15 November 2022 framework agreement signed by ReNew Power, India’s largest renewables company, and the Egyptian government. A final investment decision for the $8bn project is expected over the next 12–16 months. The project aims to produce 20,000 tonnes (t) of green hydrogen in a pilot phase starting from 2026, with a view to eventually scaling this up to 200,000t per year.

ReNew Power has partnered with Elsewedy, an integrated energy solutions provider based in the Middle East and Africa, which will act as the local co-developer for the project.

The Suez Canal green hydrogen project is just one of a series of announcements made by Egypt as host of COP27. The country signed no less than eight framework agreements for green hydrogen and ammonia on 15 November. More generally, Egypt announced a $500m deal with Germany, the European Bank for Reconstruction and Development and the US to shrink its fossil gas consumption and expand renewable energy. Egypt will also update its Nationally Determined Contribution to the UN by June 2023 under the deal. With 95% of the country’s energy mix currently made up of fossil fuels, the nation has some way to go to meet its long-term climate targets.