BP has signed a memorandum of understanding (MOU) with the Egyptian government under which it will “explore the potential for establishing a new green hydrogen production facility in the country”.

The MoU was signed by the oil giant, Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), the General Authority for Suez Canal Economic Zone (SCZONE) and the Sovereign Fund of Egypt for Investment and Development (TSFE).

BP will carry out several studies to evaluate the technical and commercial feasibility of developing a multi phase, large scale green hydrogen (gH2) export hub in Egypt.

Green hydrogen is produced by water electrolysis, powered by ‘renewable’ energy.

Anja-Isabel Dotzenrath, BP head of gas and low carbon energy, said: “Egypt has world class renewable energy resources, and we look forward to working with the government to explore how we can support its ambitious low carbon strategy.”