Egypt Announces a National Strategy for Low-Carbon Hydrogen

On Thursday, 15 August, the Egyptian government announced the release of the “National Low-Carbon Hydrogen Strategy”. It is a part of the country’s efforts to shift towards a low-carbon economy and to dedicate environmental sustainability.

Dr. Mustafa Madbouli, Prime Minister of the Cabinet, emphasised the importance of this strategy. It is a part of the key steps towards achieving the sustainable development goal “Egypt Vision 2030”. It bolsters Egypt’s efforts towards diversifying clean and sustainable energy sources. The strategy also reduces carbon emissions, aligning with its international commitments to combat climate change.

Adviser Mohammed Al-Homsani, the official spokesman for the House of Ministers, stated that the strategy relies on leveraging Egypt’s distinctive geographical location to support low-carbon hydrogen production. He mentioned the abundant natural resources, namely solar and wind energy. The plan aims to promote cooperation with international partners and financial institutions. Egypt wants to support research, development, and domestic investment. 

The strategy is expected to invigorate Egypt’s energy sector, attract foreign investment, and create new job opportunities. It will also improve economic efficiency in the use of local resources.

The National Low-Carbon Hydrogen Strategy involved several international partners, including the European Bank for Reconstruction and Development. It is willing to increase the power of hydrogen production and its derivatives. Egypt is seeing the gradual expansion of low-carbon hydrogen for local use. Hydrogen is used in all Egyptian sectors, especially industry and transportation. Egypt also wants to increase its export share to global markets.

Councilor Mohammed Al-Homsani noted that the National Council for Green Hydrogen and its derivatives will monitor the implementation of the National Low-Carbon Strategy. The organisation was created in 2023 to unify the state efforts and stimulate investment in hydrogen. 

The monitoring will happen on an annual basis to measure progress. The strategy is expected to contribute to the economic returns of Egypt’s increased gross domestic output. It will reach about 18 billion dollars by 2040. Egypt expects more than 100 thousand new jobs to be created by then, doubling domestic energy security. It wants to diversify its sources and reduce CO2 emissions, supporting the transition to a green economy.

The official spokesman added that the investment in green hydrogen has been developed under the Egyptian Cabinet. It focuses on many priority sectors through partnerships with private-sector investors. The spokesman stated that the investment website contains competitive features, such as Strategic and Investment Incentives, as well as the success of partners. The website also includes:

• information about Egypt’s green hydrogen production plans and the framework agreement,
• the procedures for the development of green hydrogen projects,
• outlines of the National Low Carbon Hydrogen Strategy

Egypt aims to achieve the ambitious plan and reach 5 – 8 % of the global commercial market for hydrogen.