ReNew Power, a subsidiary of ReNew Energy Global, said on Tuesday that it has signed a framework agreement with the Egyptian Government to set up a green hydrogen plant in the Suez Canal Economic Zone.

The plant, which will entail an investment of $8 billion, will have a targeted annual production of 220,000 tonnes of green hydrogen. The framework agreement follows the Memorandum of Understanding (MoU) signed in July this year, ReNew Power said in a statement.

“This project is scheduled to be implemented in phases, the first of which is a pilot phase to produce 20,000 tonnes of green hydrogen, along with derivatives, annually. In the next phase (Phase I), the production of 200,000 tons per year, along with derivatives, will be achieved, thereby, bringing the project’s total green hydrogen production capacity to 220,000 tonnes per year,” it added.

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Based on the framework agreement, ReNew Power will be further undertaking project and site studies in the coming months and is expected to make the Final Investment Decision (FID) over the next 12 – 16 months, the company said.

Thereof, the pilot phase project is expected to be commissioned in 2026. Usufruct agreements for the project are also expected to be discussed going forward, the basis on which land shall be allocated to ReNew Power for developing the green hydrogen project, it added.

ReNew Power has partnered with Elsewedy Electric, the leading integrated energy solutions provider in the Middle East and Africa, which will be the local co-developer for the project.