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The newly formed consortium has signed a framework agreement (FWA) with the Egyptian government during the Egypt-EU Investment Conference. (Image source: bp)

To advance plans of a multi-phase green hydrogen (gH2) project in Egypt, bp has signed a joint development agreement (JDA) with a consortium that includes Masdar, Hassan Allam Utilities and Infinity Power

While bp will remain the prime developer and operator, this consortium aims to bring together the region's hydrogen initiatives to provide a solid base for the promotion of this alternate energy medium. 

“We welcome the addition of bp to the consortium, building on the well-established existing relationship between our companies and supporting Masdar’s ambition to drive the development of green hydrogen around the world. We already have plans to develop green hydrogen projects in Egypt and this agreement reinforces Masdar and the UAE’s commitment to Egypt to realise its massive clean energy and green hydrogen potential, alongside our Africa renewable energy champion IPH,” said Mohammad Abdelqader El Ramahi, Masdar’s chief green hydrogen officer.

A single large-scale, multi-phase project for the development of gH2 and its derivatives to boost exports is also on the pipeline. “Hydrogen has a role to play in the future of global energy. We look forward to working with our partners to try to unlock hydrogen’s potential in Egypt’s energy story,” said bp’s senior vice president - hydrogen and CCS, Felipe Arbelaez.

bp has eyes on Egypt's hydrogen potential since 2022, when it signed a memorandum of understanding with the government to conduct feasibility studies, and considered the region home to 'world-class renewable energy resources'. That year witnessed multiple hydrogen research initiatives, one being Petrofac's first new energies project in Egypt

“We know Africa has abundant renewable resources, and this hydrogen export hub will take advantage of these resources and bring environmental and economic benefits to Egypt and other nations. Hydrogen power is an incredibly exciting technology, and this export hub can help to power green industry in Africa and beyond, and strengthen Egypt’s role as a leader in green power," said Nayer Fouad, CEO of Infinity Power.

Oppurtunity for regional cooperation and global expansion

The newly formed consortium has signed a framework agreement (FWA) with the Egyptian government during the Egypt-EU Investment Conference to kick-start research activities on the technical and commercial feasibility of the project.

In the presence of Moustafa Madbouly, Prime Minister of Egypt; Mohamed Shaker, Minister of Electricity and Renewable Energy, and Hala El-Said, Minister of Planning and Economic Development, the FWA was signed by Nader Zaki, bp’s regional president - Middle East and North Africa; Karim Hefzy, chief operating officer of Hassan Allam Utilities; Andreas Bieringer, director - green hydrogen business development and commercial, Masdar, and Mohamed Ismail Mansour, chairman of Infinity Power.

"We are pleased that the signing coincides with our celebration of 60 years in Egypt, which clearly reflects our ongoing commitment to the country. Over the decades, we have been a key supplier of energy in Egypt, consistently working to meet its increasing energy demands while supporting its endeavors for a more sustainable energy future. The diverse experiences of partners in energy projects present a great opportunity for regional cooperation and accessing global markets, fundamentally supporting Egypt's energy transition plans," said Zaki.

Recently, the MENA region is witnessing a surge in hydrogen projects, including Chariot's Project Nour in Mauritania and Project White Dunes by Falcon Capital Dakhla in Morocco.