bp joins majors to explore Egyptian green hydrogen project

bp has joined forces with Masdar, Hassan Allam Utilities and Infinity Power to explore developing a multiphase green hydrogen project in Egypt.

Under a joint development agreement (JDA) the consortium has signed a framework agreement with the North African nation’s government to start feasibility studies on the prospective project.

The players plan for bp to act as the main developer and operator, with the plant expected to focus on exporting the energy carrier.

It follows a December 2022 agreement between bp and the Egyptian Government to explore green hydrogen production in the country.

Read more: bp signs agreement with Egyptian Government to explore green hydrogen production

bp’s Regional President for MENA, Nader Zaki, said the latest signing coincides with the oil and gas major’s 60^th year in Egypt.

“Over the decades, we have been a key supplier of energy in Egypt, consistently working to meet increasing energy demands while supporting its endeavours for a more sustainable future.”

Felipe Arbelaez, Senior Vice-President Hydrogen and CCS at bp, added, “We look forward to working with our partners to try to unlock hydrogen’s potential in Egypt’s energy story.”

The plans come as reports suggest bp has frozen new offshore wind projects and halted hiring, as new CEO Murry Auchincloss aims to save at least $2bn by the end of 2026, with a renewed emphasis on oil and gas.

Earlier this year the Auchincloss told investors blue hydrogen would be the company’s focus this decade, with green hydrogen production expected closer to 2030.

Read more: Blue will be bp’s hydrogen focus this decade – energy major posts $13.8bn 2023 profits

“With hydrogen, our focus this decade is on blue hydrogen and decarbonisation of our refineries, while laying the foundation for green hydrogen production towards the end of the decade,” the CEO said.