InvestorQ : Can you tell me about the Egypt project being planned by ReNew Power in green hydrogen?
Lavanya Subramanian made post

Can you tell me about the Egypt project being planned by ReNew Power in green hydrogen?

Anamika Sodhani answered.
2 weeks ago

The project is worth $8 billion and is being spearheaded by the redoubtable Sumanth Sinha who heads ReNew Power in India. The company has just signed a preliminary agreement with the Egyptian government. As per the deal, ReNew Power will invest a massive sum of $8 billion (Rs64,000 crore) to produce green hydrogen in Egypt. The other party to the deal is the government of Egypt, so it has sanction at the highest level. Incidentally, this will be the first such large scale green hydrogen project in Egypt.

ReNew Power has the backing of marquee names like Goldman Sachs Group and the Abu Dhabi Investment Authority (ADIA). The venture in Egypt will look to produce around 220,000 tonnes of clean fuel annually over the next few years. Incidentally, Green hydrogen is about generating via electrolysis where the electric current is renewable. When hydrogen is produced by fossil fuels, it is grey hydrogen. The electric current helps to separate hydrogen and oxygen from water, which are its two key components.

ReNew Power joins other marquee names in India like the Reliance group and the Adani group which are investing billions of dollars ingo green hydrogen. Under the Modi regime, green hydrogen is a major anti-CO2 commitment made by India to the world. ReNew sees this as an opportunity to become a leader in the green hydrogen business and get a first mover advantage. The plant in Egypt gives ReNew Power easy access to the lucrative European markets. Adani and the Ambanis have already committed $70 billion to green hydrogen.