Italian oil and gas giant, Eni S.p.A., has signed an agreement with the Egyptian Electricity Holding Company (EEHC) and the Egyptian Natural Gas Holding Company (EGAS) to assess the technical and commercial feasibility of projects for the production of green hydrogen in the country.
Eni has been present in Egypt since 1954, and operates in the country through its subsidiary, IEOC Production.
The deal will see the parties conduct a study into joint projects to produce green hydrogen using electricity generated from renewables, and blue hydrogen, through the storage of CO2 in depleted natural gas fields.
The study will also analyze the potential local market consumption of hydrogen and export opportunities. In addition, possible development and business schemes will be evaluated to implement the selected projects.
“The agreement is part of the path that Eni has undertaken to reach the target of eliminating Scopes 1, 2 and 3 net emissions (Net GHG Lifecycle Emissions) and cancelling out the relative emission intensity (Net Carbon Intensity) by 2050,” the company explained in a statement.
ENI’s deal aligns with Egypt’s strategy for energy transition by diversifying energy mix and developing hydrogen projects in cooperation with major international companies.
Green Hydrogen, touted as the energy technology of the future, is produced using renewable energy and electrolysis to split water, and is distinct from grey hydrogen. Eni hopes to utilise Egypt’s vast renewable energy resources to produce green hydrogen, and take advantage of Egypt’s proximity to European markets.
A new report by U.S based market intelligence firm, Allied Market Research, sees the global green hydrogen market reach $9.83 billion by 2028, growing at a CAGR of 54.7% from 2021 to 2028.
South African companies like Sasol, and IDC, have also announced plans to join the green hydrogen race. The parties plant to jointly develop a viable green hydrogen sector in Africa’s most industrialised country.