Italian oil major Eni said Thursday it will develop a number of renewable energy projects in Egypt in partnership with the local government, allowing the company to maximize its gas value chain in the country, Kallanish Energy learns.
The first agreed-to project will be a 50-megawatt (MW) solar photovoltaic (PV) plant in Sinai, near the Abu Rudeis facilities. Eni said the plant’s construction will be sanctioned next month and completion is projected for December 2017.
The project will built on a fast-track schedule through Petrobrel, a 50-50 joint venture between Eni’s subsidiary, IEOC, and the state company Egyptian General Petroleum Corp. (EGPC).
“With this initiative, the Egyptian authorities have confirmed their strong commitment towards the environment, based on the double positive effect of reducing the emissions from power generation and utilizing a green fuel in the auto transportation system,” the major said, in a statement.
Clean energy projects will reduce the use of natural gas in electricity generation. The gas made available through these projects can then be used to expand the utilization of compressed natural gas (CNG) as fuel as an alternative to diesel or gasoline. This would generate “a low-carbon cycle based on a gas-renewable energy mix,” Eni said.
The Italian major, which currently produces 210,000 barrels of oil-equivalent per day (BOE/d) in Egypt, has plans to develop 420 MW of renewable energy by 2022.
The new positioning in the renewable sector will allow the company to maximize the gas value chain in the country,” it said.