Egypt, Eni ink MoU on hydrogen production projects
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Egypt-ENI Hydrogen MoU outlines joint feasibility studies for green and blue hydrogen using renewable energy, carbon capture, and CO2 storage, targeting domestic demand, exports, and net-zero goals within Egypt's energy transition.
What You Need to Know
A pact to study green and blue hydrogen in Egypt, leveraging renewables, CO2 storage, and export/demand pathways.
EEHC and EGAS sign MoU with Eni on hydrogen feasibility.
Assess green hydrogen via renewables and grid interconnections.
Evaluate blue hydrogen with CO2 storage in depleted gas fields.
Study domestic demand, export options, and financing models.
Supports Egypt's transition and Eni's net-zero goal by 2050.
The Egyptian Electricity Holding Company (EEHC) and the Egyptian Natural Gas Holding Company (EGAS) signed a memorandum of understanding (MoU) with the Italian energy giant Eni to assess the technical and commercial feasibility of green and blue hydrogen production projects in Egypt, which many see as central to power companies' future strategies worldwide today.
Under the MoU, a study will be conducted to assess joint projects for the production of green hydrogen using electricity generated from renewable energy and supported by regional electricity interconnections where relevant, and blue hydrogen using the storage of CO2 in depleted natural gas fields, according to a statement by the Ministry of Petroleum on Thursday.
The study will also estimate the potential local market consumption of hydrogen and export opportunities, taking cues from Ontario's hydrogen economy proposal to align electricity rates for growth.
This agreement is part of Eni's objective to achieve zero net emissions by 2050 and Egypt's strategy towards diversifying the energy mix and developing hydrogen projects in collaboration with major international companies, taking note of Italy's green hydrogen initiatives in Sicily as a comparable effort.
It signed the deal with Egyptian Natural Gas Holding (EGAS) and Egyptian Electricity Holding Co. (EEHC).
The companies will carry out a joint study on producing renewable energy powered green hydrogen, informed by electrolyzer investments in similar projects, where applicable. They will also work on blue hydrogen. This involves reforming natural gas and capturing the resulting CO2, in this instance in depleted natural gas fields.
The study will also consider domestic hydrogen use and export options, including funding models like the Hydrogen Innovation Fund now in Ontario.
Eni said the MoU was in line with its plans to eliminate net emissions and emissions cancel emission intensity by 2050. The company noted the agreement was in line with Egypt’s plan for the energy transition, in which it pursues hydrogen plans with major international companies, alongside broader clean-tech collaboration such as Tesla cooperation discussions in Dubai, to accelerate progress.
