The Egyptian arm of energy giant Shell will work alongside Energean Egypt (Energean) to develop decarbonisation solutions as the country looks to accelerate its drive towards Net Zero.
Having signed a Memorandum of Understanding (MoU) with Shell Egypt, Energean aims to harness its prior experience in designing a carbon capture and storage (CCS) solution in a depleted hydrocarbons field in Prinos, Greece.
The new project will see the partners work towards decarbonising the liquefied natural gas (LNG) terminal in Idku operated by Shell through capturing and storing carbon dioxide (CO2) in a depleted reservoir in the Abu Qir offshore concession operated by Energean.
Commenting on the project, Nicolas Kacharov, CEO of Energean International and Country Manager Egypt, said, “CCS in Egypt can only be developed in long term partnerships with industries willing to ‘green’ their products.”
“We are excited to work with Shell as such a credible and committed partner.”
According to Energean, the partnership will address a ‘major CCS feasibility challenge’, identified as the ability to connect sizeable carbon emitters to an adequate geological structure.
The company also said that Egypt had ‘undoubted CCS potential’ due to a series of interlinked factors including well understood depleted gas fields, adjacent to much newer production facilities; an infrastructure, skills and experience rich zone; demand from global markets and stakeholders for decarbonised molecular energy products.
According to a World Bank report, air pollution costs Egypt around $1.5bn per year. To address this, the Egyptian government has announced several projects aimed at reducing greenhouse gas emissions.
The report revealed that – while the technology is attracting a great deal of interest – there are still financial and social obstacles to overcome,
Having announced its hydrogen strategy last November, the country may look to prioritise its potential to become a renewable energy powerhouse.
Equipped with a strong market, plenty of sun and lots of wind in the Gulf of Suez, Egypt has also seen an increase in foreign green hydrogen investment such as Norway-based Scatec which is overseeing development of a 100-megawatt (MW) green hydrogen production plant in the country.
