As per the agreement between Elsewedy Electric and ReNew Power, will be implemented in phases, starting with the pilot phase to produce 20,000 tonnes of green hydrogen annually with the derivatives
Elsewedy Electric the Egyptian energy and infrastructure company and ReNew Power on Tuesday announced the signing of the agreement to set up a green hydrogen plant in the Suez Canal Economic Zone, Egypt with an investment of 8 billion dollars for the landmark project. ReNew Power Private Limited is a division of ReNew Energy Global Plc.
The parties signed a framework agreement with The Sovereign Fund of Egypt (TSFE), Infrastructure & Utilities Sub Fund, Egyptian Electricity Transmission Company (EETC), New and Renewable Energy Authority (NREA), and General Authority for Suez Canal Economic Zone (SCZONE) to develop, construct, finance, operate and maintain a green hydrogen project, states the Elsewedy Electric’s press statement released on Tuesday. The project also aims to have a targeted annual production of 2,20,000 tonnes of green hydrogen.
The project, as per the agreement, will be implemented in phases, starting with the pilot phase to produce 20,000 tonnes of green hydrogen annually with the derivatives. Phase 1 of the project would see the production of 2,00,000 tonnes of green hydrogen per year, with the derivatives, reaching the annual production of green hydrogen to 2,20,000 tonnes per year, pushing the project’s total production capacity. The current agreement is followed by the Memorandum of Understanding (MoU) signed in the month of July this year.
ReNew Power will further commence the site studies and the project and will make the final investment decision in the next 1.5 years. The pilot electrolysis plant will produce 20,000 tonnes of green hydrogen in a year and is expected to begin in the year 2026. “Based on the Framework Agreement, ReNew Power will be further undertaking project and site studies in the coming months and is expected to make the Final Investment Decision (FID) over the next 12 – 16 months.
Thereof, the Pilot Phase project is expected to be commissioned in 2026” states the official release of ReNew Power. Usufruct agreements for the project are expected to advance on the basis of which land shall be assigned to ReNew Power for the development of the green hydrogen project. Elsewedy Electric S.A.E with ReNew power will be the co-developer of the project and is the leading integrated energy solutions provider in the middle east and Africa.
The President and Chief Executive Officer of Elsewedy Electric, Eng. Ahmed El Sewedy stressed the importance of green hydrogen for future generations and added that the partnership with the leading renewable energy companies would assist in the diversification of Elsewedy Electric’s portfolio and its influence on different sectors.
The partnership aligns with the firm’s tactical approaches to providing environment-friendly cohesive solutions that would support the net-zero goals. “This comes as part of Elsewedy Electric’s long-term sustainability strategy, leveraging Egypt’s National Climate Change Strategy 2050 and supporting the global efforts to address Climate Change”, says Ahmed El Sewedy
ReNew is one of the largest renewable energy power producers and operates utility-scale solar energy, wind energy, and hydro projects. The company’s Chief Executive Officer and Chairman Sumant Sinha in the official statement released by the firm stated that the current agreement shows the firm’s intention to emerge as a leader in the sector and join the global efforts to fight climate change. The company also has a gross total portfolio of 13.4 GW of renewable energy projects that includes committed and commissioned projects. The partnership between Elsewedy Electric and ReNew Power was signed on the off-shoots of COP27, happening in Sharm El Sheikh, Egypt.
About Elsewedy Electric
Elsewedy Electric is a global provider of digital, energy, and infrastructure solutions, generating proceeds of nearly 3 billion USD per annum. The firm pioneer in energy management and efficiency, commits to sustainability and has established smart metering and green energy projects across the Middle East, Africa, and Eastern Europe. A vital part of our mission is ensuring that the communities where we operate develop and flourish. The firm specializes in Wind Energy Generation, Cables & Accessories, Electrical Products, Transformers, Communications, Energy Measurement & Management, Solar Energy Solutions, and Projects & Development, earning revenue of 60.5 billion Egyptian pounds with a net profit of 3.5 billion pounds as of December 2021.