US $5-8bn green hydrogen project do be developed in Egypt

A green hydrogen project estimated to cost between US $5 to 8bn is set to be developed in Egypt. Egyptian President Abdel Fattah El-Sisi confirmed the report and affirmed Egypt’s keenness to enhance economic cooperation and investments with Chinese companies in the different fields of mutual concern.

China International Energy Group (CIEG) will be the project’s developers and works will commence in May. China Energy and Egypt signed last November a memorandum of understanding (MoU) to establish a green hydrogen production project in Egypt, with the possibility of exporting green ammonia to European markets, a move that would bring more hard currency for the country.

READ:Kenya, EIB partner on renewable energy for green hydrogen scheme

Hydrogen demand

Egypt’s hydrogen demand is estimated to be around 2% of global hydrogen demand. Future production of hydrogen is expected to substantially increase as the world looks to decarbonise and improve energy security. The strategy estimates that the hydrogen economy will be 60% larger by 2030 and 400% larger by 2050, with 25% of the supply traded intentionally. The action plan is divided into three phases — the Pilot Phase (in the 2020s), Scale-up Phase (in the 2030s), and Full Implementation Phase (in 2040 and beyond).

The country also plans to become a regional centre for green hydrogen and plans to export about 10 million tonnes of renewable energy to Europe. In addition to increasing the ambition of the EU’s own renewable hydrogen production to 10 million tonnes annually by 2030, the REPower EU Plan also sets a target of 10 million tonnes for renewable hydrogen import also by 2030.