Uganda has signed a memorandum of understanding (MoU) with French independent power producer HDF Energy to develop a green hydrogen power plant in Uganda, according to a statement issued late on Tuesday.

The statement jointly issued by HDF Energy and Uganda's Ministry of Energy and Mineral Development did not detail the capacity of the plant or the size of the investment.

But if the plan comes to fruition, it would be the first hydrogen power plant in Uganda, which currently depends on hydro and thermal power plants but is eager to expand its generation capacity, especially in renewable energy.

Ugandan energy minister Ruth Nankabirwa Ssentamu and Nicolas Lecomte, HDF's director for southern and East Africa, signed the MoU at the ongoing U.N. Climate Change Conference of the Parties (COP27) in Sharm al-Sheikh, Egypt.

"This MoU contributes to paving the way for the development of a first Renewstable power plant in Uganda," the statement said.

Renewable is one of two models of hydrogen power plants developed by HDF. The company calls it a multimegawatt plant that produces stable electricity 24 hours a day and combines an intermittent renewable energy source, such as solar panels and on-site energy storage in the form of hydrogen.

The company expects its $181.3 million green hydrogen power plant in Namibia, Africa's first, to begin producing electricity by 2024. Hydrogen is categorized as "green," when it is made with a renewable energy source.