Norway-based international independent risk management and assurance group DNV has signed a memorandum of understanding (MoU) with Egypt-based regional engineering, procurement and construction (EPC) group Petrojet, it announced on Tuesday. The MoU would reinforce their collaboration in the Egyptian energy transition process by developing the production of green hydrogen and derivatives, including ammonia.
“Supporting the emergence of a robust hydrogen economy aligns with our commitment to the ambitions of the Paris Agreement,” reported DNV executive VP and regional director Southern Europe, Middle East and Latin America Santiago Blanco. “The scaling-up of green hydrogen is central for hard-to-abate sectors looking for low-carbon solutions to reach net zero before 2050.”
“Egypt has great potential for the cost-effective production of low-carbon hydrogen and its derivatives, and is at a geographical nexus,” highlighted DNV VP and North Africa area manager Hisham El-Grawany. “Our energy transition research shows that the region is set to become a key global supplier in the emerging global hydrogen market, and is expected to be the main exporter of pure hydrogen to Europe.”
Petrojet is aiming to become a major green hydrogen EPC company. But the MoU also coveres projects for renewable energy production and energy storage, as well as natural gas, and natural gas/hydrogen blend, infrastructure. In addition, it also encompasses other technical services relevant to carbon dioxide and low-carbon hydrogen projects.
Egypt already has some of the largest renewable energy programmes in its region. Energy diversification is part of its economic growth strategy, and the country has brought forward its target date for achieving 42% of its energy from renewables to 2030, from the original target of 2035.
Middle-Eastern and European groups have already announced investments worth more than $100-billion into hydrogen projects in Egypt. Some 70% of these investments were into nine major projects announced after the COP27 Climate Conference, at Sharm El-Sheikh in Egypt, in November. These nine projects will have a total combined production capacity of 2.1-million tonnes a year.