Development work on 4GW of green hydrogen projects in Egypt is underway after Abu Dhabi’s state-owned renewables company Masdar and energy sector investor Hassan Allam Utilities signed two memorandums of understanding (MoUs) with Egyptian state-backed organisations.

In the first phase of the project the firms aim to establish a 100,000t/yr green hydrogen manufacturing facility to be operational by 2026.

If adequate demand emerges, more facilities could then be added to reach 4GW of electrolysers in the Suez Canal Economic Zone (SCZONE) and the Mediterranean coast of Egypt by 2030, producing 480,000t/yr of green ammonia for export and domestic use.

Masdar and Hassan Allam see Egypt as well-placed to meet demand, targeting the bunkering market for marine traffic passing through the Suez Canal, as well as export to Europe and local industry.

“These agreements represent a vital step forward in the development of the green hydrogen economy for both the UAE and Egypt, and will play a significant role in our two nations’ decarbonisation efforts,” says Mohamed Jameel al-Ramahi, CEO of Masdar.

Growing hydrogen ambitions

Egypt’s ministry of electricity and renewable energy is revising its 2030 renewable energy strategy to include green hydrogen. It is also developing a green hydrogen strategy that is expected to be published by October and will include plans for production capacity of 1.4GW by 2030.

100,000t/yr – Proposed initial capacity of project

“Our green hydrogen portfolio is growing, taking us another step closer to our target and promise of developing green energy flagship projects,” says Ayman Soliman, CEO of the privately managed Sovereign Fund of Egypt.

The European Bank for Reconstruction and Development is working to help Egypt assess the supply and demand of hydrogen internationally.

A decree issued by the Egyptian government in mid-March recognises the production, storage and export of green hydrogen and ammonia as comprising part of the nation’s economic development strategy. This means tax and customs relief, simplified licensing procedures and reduced land allocation costs could potentially be made available to qualifying projects.

Earlier this year, Norwegian solar specialist Scatec signed an MoU with SCZONE to develop a green ammonia plant on the west coast of the Gulf of Suez.

Scatec had also announced plans last October to develop a 50-100MW green hydrogen plant at the same site as part of a joint venture with Dutch/UAE fertiliser firm Fertiglobe, which would use the output to produce green ammonia at its nearby fertiliser plant.

Egypt represents one of the best opportunities for firms to invest in North Africa hydrogen projects, according to a study by consultancy Verisk Maplecroft. Other countries, such as Algeria and Mauritania, could be hampered by geopolitics and civil strife, it says.

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Author: Tom Young