Image credits: DNV
Egyptian Natural Gas Holding Company (EGAS) commences energy transition plan through MOU
The country heavily reliant on hydrocarbon-based fossil fuels have inked a memorandum of understanding (MOU) with Norwegian classification society DNV to develop a supporting hub to evaluate the feasibility of decarbonising the Egyptian Petroleum sector.
Taking on net zero goals
World Bank’s data from 2015 and Fitch Solutions’ data from 2020 revealed Egypt’s renewable sources only accounted for 3.4 per cent of the country’s energy mix in 2019. A social media account called Egypt Facts and Numbers, a collaboration between United Nations Development Program and Egypt’s Ministry of Planning revealed in late December its share of renewable energy reached 31 per cent of the total generated energy in 2021.
Hydrocarbons are highly combustible and produce carbon dioxide, water, and heat when they are burned. Egypt’s reliance makes the country one of the contributors of greenhouse gas (GHG) emissions.
The purpose of the MOU is to support the development of national and regional strategies plus roadmaps related to the Petroleum sector, and support EGAS’ energy transition plan, including the introduction of low carbon energy. DNV will also evaluate production, transportation, storage and end-use of low-carbon hydrogen and its derivatives, as well as analyse options for deployment of Carbon Capture, Utilisation, and Storage (CCUS).
The scope will also identify the necessary regulations for energy sources including hydrogen/ammonia, find the optimum scenarios on transporting/exporting Egypt-produced hydrogen, repurposing natural gas infrastructure/facilities for CO2 use or low carbon hydrogen service/projects. The last step is to apply the Certification and Accreditation Mechanism for the low-carbon hydrogen/ammonia value-chain.
Santiago Blanco, DNV’s Executive Vice-President and Regional Director Southern Europe, Middle East and Latin America, Energy Systems said, “Our goal is to support nations like Egypt, leading companies and hard to abate sectors striving to go below zero before 2050. Those are key to achieve the ambitions of the Paris Agreement. This MOU is a positive commitment and will be a great hub for knowledge sharing in Egypt and beyond.”
DNV’s recent Energy Transition Outlook 2021’s report indicated that by 2050 emissions in the Middle East and North African region are expected to be reduced by 10 per cent compared to 2019. This is equivalent to energy-related emissions of 2.5 gigatonnes (Gt) of CO2 per year. The MOU and the activities demonstrate Egypt’s commitment in contributing to net zero goals.
Marine Online Media Team
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