An upcoming boom for green hydrogen projects in Egypt before COP 27 (report) - Energy

Green hydrogen in Egypt is receiving increasing attention, especially with the availability of renewable energy potential in the country, which is preparing to host the COP27 climate summit next November.

The government announced the launch of a $40 billion national hydrogen plan in the coming months, recognizing the importance of green hydrogen and ammonia production, storage and trade, as part of its economic development strategy.

The cost of green hydrogen projects in Egypt, without additional infrastructure, is expected to reach about $20 billion, according to a report issued today, Tuesday, by the energy research company Rystad Energy.

Huge potential

The projects announced in Egypt have attracted many foreign developers and shed light on the country’s potential, as the country prepares to host the COP27 climate summit.

Rystad Energy expects more influx of foreign investors, with many positive factors that Egypt possesses, including the location of the country, the Suez Canal, which witnesses about 12% of all seaborne shipments in the world, natural gas infrastructure, liquefaction stations, sea ports, and others, as well as the Its high potential from solar and wind energy.

Egypt is also close to markets such as the European Union and the Middle East, which may witness a huge demand for hydrogen in the coming years, in addition to benefiting the local market, especially the agricultural sector, according to the report.

In addition to the availability of resources and infrastructure, the Egyptian government is working to provide tax incentives and facilitate procedures. By obtaining only one permit, the investor can start the process of establishing, operating and managing hydrogen projects.

In view of this aforementioned potential, Egypt has reported on several feasibility studies and memoranda of understanding between Egyptian institutions and the leading international players in the ammonia and hydrogen market in 2021.

In May, the Suez Canal Economic Authority announced the signing of 6 memoranda of understanding for the production of green hydrogen in Egypt and ammonia, with investments amounting to $10 billion.

Green hydrogen in Egypt
Details of the memorandums of understanding – infographic from the Suez Canal Economic Authority

Green hydrogen in Egypt

The capacity of green hydrogen projects in Egypt is 11.62 gigawatts, equivalent to more than 1.57 million tons; This puts the country in first place in the world, after Australia and in parallel with Mauritania.

Green hydrogen projects are expected to be operational before 2035, Rystad Energy estimates.

With global partnerships, the Suez Canal Economic Zone accounts for 80% of green hydrogen projects in Egypt, through 7 projects announced in the past 3 months, with a total capacity of 10.76 gigawatts, which means more than 1.5 million tons of green hydrogen will be produced.

Among the most prominent of these projects, the French state-owned utility company EDF and Zero West announced the signing of a memorandum of understanding with the Suez Canal Economic Zone, to produce 350,000 tons of green ammonia and green hydrogen annually in the Ain Sukhna area, and operation is scheduled to start in the first quarter year 2026.

The UAE company Emia Power also signed a memorandum of understanding with the Suez Canal Economic Zone Authority to produce 390,000 tons of green ammonia annually in Ain Sukhna for export purposes.

In addition, Norway’s Scatec has announced plans to develop a $5 billion green hydrogen and ammonia facility, with an initial capacity of 1 million tons of green ammonia, with potential to increase to 3 million tons annually.

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