Oil group ENI signs deal to assess feasibility of producing hydrogen in Egypt

EGYPTThe oil group ENI has signed an agreement with state-owned Egyptian Electricity Holding Company (EEHC)and Egyptian Natural Gas Holding Company (EGAS) signed a deal to assess the feasibility of producing hydrogen in Egypt.

The move is part of Eni’s major overhaul launched last year to transition into renewables and taper off its oil and gas output.

The groups will conduct a study into joint projects to produce both green hydrogens, using electricity generated from renewables, and blue hydrogen, through the storage of carbon dioxide.

The review will also analyse potential local consumption of hydrogen and opportunities for exports.

Egyptian authorities for the production and marketing of hydrogen produced from renewable energy sources as part of the Italian energy group’s strategy to diversify its activities.

Egypt is one of the pioneers on the African continent in terms of renewable energy production, particularly solar and wind power, which already account for 11% of its electricity mix (55,000 MW in 2020, editor’s note), i.e. an installed capacity of 6,000 MW.

According to AFRIK21, Cairo is counting on 20% of electricity being produced from renewable sources by 2022. This objective will be quickly achieved thanks to the projects underway in this North African country, notably in the Gulf of Suez for wind power and in Kom Ombo or Zaafarana for solar power.

Green hydrogen will be an immeasurable means of storing electricity produced from new renewable energy plants, and above all a means for the Egyptian government to export its surpluses to the international market.

ENI sees the partnership with the Egyptian authorities as part of its objective to reduce its CO2 emissions. This is a global trend among oil companies. Some, like the French company Total, have even created subsidiaries dedicated to the production of renewable energy.

It is also a way of diversifying in a world where the production and use of fossil fuels are increasingly criticised for their environmental impact.

For the Egyptian government, the production of green hydrogen with ENI will contribute to its objective of diversifying its sources of electricity production. Cairo has signed partnerships with several companies for the study and production of green hydrogen.

This is the case with the German energy company Siemens and the Belgian Dredging, Environmental and Marine Engineering NV (Deme Group). Egypt expects to invest 4 billion dollars in green hydrogen over the next three years.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE

Other Recent Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.