ReNew Power has signed a preliminary agreement with the Egyptian government to invest as much as $8 billion (over Rs 63,000 crore) to produce green hydrogen in the African country, according to the chairman of the renewable energy firm.

ReNew, backed by investors including Goldman Sachs Group Inc and Abu Dhabi Investment Authority, will be looking to produce 220,000 tonnes of the clean fuel annually in Egypt in the coming years, Chairman Sumant Sinha said in a text message.

The Indian company plans to build the project in the Suez Canal Economic Zone, the Egyptian embassy in New Delhi said in a Facebook post.

ReNew joins several Indian companies tapping the prospects in green hydrogen, which is considered crucial to decarbonise hard-to-abate heavy industries. Conglomerates run by India’s two richest men — Gautam Adani and Mukesh Ambani — along with state energy giants have committed large investments in the green hydrogen value chain, responding to Prime Minister Narendra Modi’s ambition to make the country a global powerhouse in this area.

“Green Hydrogen is critical for decarbonising industries in the fight against climate change and we intend to be a global leader in this sector,” ReNew’s Sinha said.

In January, Reliance Industries announced it would commit $75 billion to green energy, including an undisclosed amount towards green hydrogen projects. Earlier, in November 2021, Adani Group announced it would invest $70 billion by 2030 into renewable energy infrastructure, including in green hydrogen.