A Memorandum of Understanding (MoU) between EPC contractor Petrojet and assurance provider DNV has been reached to work together on the development of green hydrogen and its derivatives, notably ammonia, in Egypt.
The agreement covers projects for energy storage and renewable power generation, technical studies for hydrogen and natural gas infrastructure, and low-carbon technical services.
The MoU aims to scope areas in which DNV can support Petrojet with its technical expertise in design verification and project assurance. Petrojet, whose expertise includes pipelines and offshore oil and gas, is seeking a leading role as a green hydrogen engineering, procurement, and construction contractor.
“Egypt has great potential for the cost-effective production of low-carbon hydrogen and its derivatives and is at a geographic nexus,” said Hisham El-Grawany, vice president and area manager for North Africa at DNV. He said the region was set to become a key global supplier in the emerging global hydrogen market and a major exporter of hydrogen to Europe.
As part of a strategy for economic expansion, Egypt is making attempts to diversify its energy supply. Its goal of using 42% renewable energy has been advanced by five years, to 2030, and it boasts some of the greatest renewable energy schemes in the region. The nation wants to establish itself as a center for the export of low-carbon LNG and green ammonia.
Investments reportedly made by Middle Eastern and European businesses recently surpassed the $100 billion level. Around the COP27 climate summit in Sharm el-Sheikh in November last year, nine significant projects with a combined annual green hydrogen production capacity of 2.1 million tonnes were announced. They are situated close to the Suez Canal Economic Zone and the port city of Ain Sokhna on the Red Sea.
