ReNew Power signed a preliminary agreement with the Egyptian government to invest as much as $8 billion to produce green hydrogen in the African country, according to the Chairman of the renewable energy firm.

ReNew, backed by investors including Goldman Sachs Group and Abu Dhabi Investment Authority, will be looking to produce 2,20,000 tons of the clean fuel annually in Egypt in the coming years, Chairman Sumant Sinha said in a text message.

The company plans to build the project in the Suez Canal Economic Zone, the Egyptian embassy in New Delhi said in a Facebook post.

Green hydrogen sector

ReNew joins several Indian companies tapping the prospects in green hydrogen, which is considered crucial to decarbonise hard-to-abate heavy industries.

Conglomerates run by—Gautam Adani and Mukesh Ambani—along with public sector majors have committed large investments in the green hydrogen value chain, responding to Prime Minister Narendra Modi’s ambition to make the country a global powerhouse in this area.

“Green hydrogen is critical for decarbonising industries in the fight against climate change and we intend to be a global leader in this sector,” ReNew’s Sinha said.