BP joins green hydrogen development consortium in Egypt

Signatories from L-R: Mohamed El-Khaiat, Chairman of the New and Renewable Energy Authority, Ayman Soliman, CEO of the Sovereign Fund of Egypt, Walid Gamal Eldin, Chairman of Suez Canal Economic Zone, Nader Zaki, BP's Regional President, Middle East and North Africa, Andreas Bieringer, Director, Green Hydrogen Business Development and Commercial, Masdar, Karim Hafzi,, COO of Hassan Allam Utilities, Mohamed Ismail Mansour, Chairman of Infinity Power.

BP Plc (LON:BP) has joined an existing consortium that includes UAE's renewables major Masdar to look at the development of a multi-phase green hydrogen project in Egypt.

The British energy group has signed a joint development agreement to become part of the team made up of Masdar, Infinity Power, which is a joint venture between Egypt’s Infinity and Masdar, and Cairo-based Hassan Allam Utilities. BP, moreover, will be the main developer and operator of the project.

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According to an announcement today, the companies are merging their green hydrogen projects in Egypt and will study the possibility for a single large-scale, multi-phase, export-oriented project for green hydrogen and its derivatives.

The consortium has also signed a framework agreement with the Egyptian government to commence studies for the technical and commercial feasibility of the project. This took place on the sidelines of the Egypt-EU Investment Conference held on June 29-30 in Cairo. A total of four deals for green ammonia projects in Egypt requiring a combined investment of almost USD 33 billion (EUR 30.8bn) were signed. According to an announcement from the Egyptian cabinet, BP, Masdar, Hassan Allam Utilities and Infinity Power will invest USD 14 billion as part of a green ammonia project at the port of Sokhna.

"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," said Nader Zaki, bp's regional president for the Middle East and North Africa.

“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,” commented Mohammad Abdelqader El Ramahi, Masdar’s chief green hydrogen officer.

In May, Masdar, Infinity Power and Hassan Allam Utilities signed a land access agreement for their 10-GW onshore wind project in Egypt.

(USD 1 = EUR 0.934)