bp signed a memorandum of understanding (MoU) with the Government of Egypt to explore the prospects of establishing a new green hydrogen production facility in the country. The agreement was signed by bp, the Egyptian Electricity Transmission Company (EETC), the General Authority for Suez Canal Economic Zone (SCZONE), the Egyptian New and Renewable Energy Authority (NREA), and the Sovereign Fund of Egypt for Investment and Development (TSFE).
According to the terms of the MoU, bp will undertake a variety of studies to assess the financial and technical feasibility of building a multi-phase, substantial green hydrogen export hub in Egypt. In order to target best-in-class resources, it is intended that high potential locations throughout Egypt would be taken into account as part of the feasibility study. Green hydrogen is produced through the electrolysis of water utilising renewable energy.
In June 2022, the Asian Renewable Energy Hub (AREH) reached an agreement with bp to sell a 40.5 per cent stake in the large renewables and green hydrogen hub. AREH intended to gradually expand the production of onshore wind and solar energy in the Pilbara region of West Australia, and achieve an overall capacity of 26 GW of solar and wind energy. This project would provide energy exports to countries like Japan and South Korea in order to serve the domestic Australian market.