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Egypt: Council Set Up to Target Green Hydrogen Investment

Egypt is looking to stimulate investment in its green hydrogen sector, with the government setting up a national body to drive the process. This follows the North African country having signed several deals with international companies to produce green hydrogen and its derivatives in the Suez Canal Economic Zone (SCZone). On 9 August 2023, the government signed a preliminary agreement with the Indian renewable energy company Ocior to invest $4 billion in green hydrogen projects in the SCZone. 

In December 2022, Egypt signed seven memoranda of understanding (MoUs) with the Saudi Arabian Company Acwa Power; the Benchmark Alliance; the China Energy company; the national Holding Company for Chemical Industries; the DAI Global company (Germany); the OCIOR Energy Company (India); the Voltalia-TAQA alliance; and the British Petroleum company.

Egyptian state media, quoting a Cabinet statement released on Wednesday, 30 August, said the national body would officially be known as the National Council for Green Hydrogen and its Derivatives. It will be headed by Prime Minister Mostafa Madbouly and include the ministers of electricity and renewable energy, petroleum and mineral resources, finance, environment, and the Executive Director of Egypt’s Sovereign Fund.

Green hydrogen, a potential game-changer

Earlier in August, President Abdel Fattah El Sisi said Egypt enjoys great opportunities in the field of green hydrogen production. Sisi stressed the importance of green hydrogen that can be generated through solar and wind energies and that it could be exported to Europe and elsewhere. The council will be tasked with monitoring the implementation of the country’s National Strategy for Green Hydrogen. It will also be responsible for reviewing all legislation and regulations concerning green hydrogen and its derivatives, according to the Cabinet statement.

As part of its National Climate Strategy 2050, Egypt aims to reduce carbon emissions and promote the use of renewable and alternative energy sources, including green hydrogen. The country is aiming to produce green hydrogen at the lowest cost worldwide by 2050 at $1.7 per kg. It also wants to capture 8% of the global hydrogen market.