India’s largest renewable energy company ReNew Power has signed a preliminary deal with the government of Egypt to invest a total of $8 billion (over Rs 63,000 crore), a report by Bloomberg said on Friday. According to the report, the amount will be spent on producing green hydrogen by setting up a facility in the African country, the chairman of the renewable energy firm said.
ReNew Power Chairman Sumant Sinha in his text message said ReNew, backed by investors, including Goldman Sachs Group Inc and Abu Dhabi Investment Authority, will be eyeing to produce 220,000 tonnes of the clean fuel annually in Egypt in the coming years.
According to the Egyptian embassy’s Facebook post, the Indian firm plans to build the project in the Suez Canal Economic Zone.
The report mentioned that ReNew Power joins several Indian companies tapping the prospects in green hydrogen, which is considered crucial to decarbonise hard-to-abate heavy industries.
Mukesh Ambani’s Reliance Industries and Gautam Adani’s Adani Group, the two conglomerates run by India’s two richest men, along with state-run energy giants have committed large investments in the green hydrogen value chain.
Prime Minister Narendra Modi has already urged to make the country a global powerhouse in this area.
Sumant Sinha said, “Green Hydrogen is critical for decarbonising industries in the fight against climate change and we intend to be a global leader in this sector.”
Meanwhile, Reliance Industries in January this year announced it would commit $75 billion to green energy, including an undisclosed amount towards green hydrogen projects. Adani Group in November 2021 said the company would invest $70 billion by 2030 into renewable energy infrastructure, including in green hydrogen.