Egypt to Become an Anchor for Hydrogen Across MENA
A New Legislative Landscape as Egypt set to become a serious global contender in Green Hydrogen production and a core anchor for hydrogen production across MENA.
Egypt is gearing itself to become a heavyweight producer of green hydrogen and its derivative products, and has set its strategy to providing 5-8% of the world’s hydrogen by 2040, ramping up its GDP by USD 10-18 billion in the process.
The Government has embarked on executing agreements, to develop green hydrogen projects and meet this goal. Ideally located in close proximity to Europe, Egypt is naturally fit to integrate its production into the European network of hydrogen pipelines, and to become a serious contender in the global green hydrogen market.
Egypt first established its Suez Canal Economic Zone to promote economic trade and investment in 2015, which today serves as the focal point for Egypt’s green hydrogen strategy. The Suez Canal Economic Zone, established around a shipping lane which is host to 15% of the global maritime trade, is impeccably situated to serve as a logistics centre for the distribution and export of green hydrogen and its products.
2024 a key year for hydrogen in Europe
On Tuesday 2nd January 2024, the Egyptian Parliament ratified the final bill designed to incentivise the development of new renewable energy projects centered on green hydrogen and its derivatives, which remains to be promulgated and entered into force.
This legislation emerges amidst a backdrop of numerous other major economies advocating for the advancement and adoption of the environmentally sustainable green hydrogen. Regionally, both the UAE and Saudi Arabia have already pledged to substantial initiatives for green hydrogen production and its application.
Egypt has galvanized efforts to align with this movement, and to contribute to the flourishing renewable energy market emerging in the MENA regions.
MoUs to be signed in the coming months
To action its strategy, Egypt has embarked into entering a series of agreements, including signing with a number of international investors, to start production of nearly 5 GW Green hydrogen which continues to expand as interest in green hydrogen grows.
Egypt is capitalising on the opportunity to export its green hydrogen production to Europe — the rationale behind this comes down to simple mathematics.
While the fossil price per barrel is estimated to reach USD 100-115 by 2030, the cost of producing hydrogen per kilogram from renewables will fall to USD 2.0-2.5 by 2030; a staggering price difference.
The unveiled legislative strategy in Egypt included allocating substantial land and resources for the development of renewable energy projects, and drew significant external investments from EU partners.
India’s Rana Group Eyes $12 Billion Investment in Egypt’s Green Hydrogen Production
Minister Plenipotentiary Trade and Head of Commercial Representation Yahya Al Wathiq Billah has met with representatives from India’s Rana Group, a leading company in several economic sectors, such as electric vehicles, agricultural equipment, satellites, and sustainable energy, including green hydrogen across MENA.
The meeting discussed the company’s desire to establish a project to produce green hydrogen in Egypt, with expected investments amounting to $12 billion to be invested over the life of the project.
This visit comes within the framework of Rana Group’s desire to expand outside India, especially in the African continent.
Byline: Raneem Alfahham
