Indian independent power producer (IPP) ReNew Power has signed an agreement with the government of Egypt to set up a green hydrogen plant that will require an investment of US$8 billion.
Planned for the Suez Canal Economic Zone, the project is scheduled to be implemented in phases, with the first to produce 20,000 tons of green hydrogen, along with derivates, and be commissioned in 2026.
The next phase would bring the project’s total green hydrogen production capacity to 220,000 tons per year, but no timeframe was given for when that would be achieved.
ReNew Power has partnered with energy solutions provider Elsewedy Electric, which will be the local co-developer for the project.
Based on the agreement with Egypt’s government, ReNew will undertake project and site studies in the coming months and is expected to make a final investment decision over the next 12 to 16 months.
The news comes after green energy company Fortescue Future Industries unveiled plans in September to construct a green hydrogen facility in Egypt that would feature 9.2GW of solar and wind generation, while another IPP, Globeleq, is also looking to develop a green hydrogen hub in the country’s Suez Canal Economic Zone.
The Egypt announcement coincides with ReNew publishing its results for the three months ending 30 September, revealing that it had 3,713MW of commissioned solar at the end of the quarter, a 45% increase year-on-year.
The company’s revenue during the quarter reached INR22,409 million (US$275 million), a 5.1% jump year-on-year, while it posted a net loss of INR986 million, compared to a net loss of INR6.6 billion in the same quarter last year.
“The core operations of the company continue to execute as expected this year and our continued access to affordable capital are enabling the company to capitalise on significant growth opportunities,” said ReNew CEO, Sumant Sinha.
During the reporting quarter, ReNew secured financing with 12 lenders for a “round-the-clock” renewable energy project in India that will feature 900MW of wind, 400MW of solar PV and battery energy storage.
ReNew revealed yesterday it is acquiring shares in 3E, a renewable energy asset performance management and analytics platform that has about 20GW of contracted capacity under management.