August 2024: Egypt's National Low Carbon Hydrogen Strategy was announced by the government on 15 August 2024 as part of steps to attain the sustainable development goals under "Egypt Vision 2030". The strategy is expected to boost Egypt's gross domestic product by around USD 18 billion by 2040, create more than 100,000 new job opportunities by 2040, provide increased energy security and help decarbonisation in Egypt as well as globally.
The strategy has a central scenario of targetting 5% (3.8 million tons per year) of the global tradeable market by 2040 and a more ambitious green scenario targetting up to 8% (5.6 million tons per year) of the global tradeable market by 2040 which requires around USD 60 billion of investment.
The strategy sets out a phased approach: pilot phase in the 2020s, scale-up phase in the 2030s, and full implementation phase in 2040s. The action plan includes increasing the production capacities of hydrogen and its derivatives, gradually expanding the local use of low-carbon hydrogen, leading to its use in all sectors, especially industry and transportation, and then seeking to increase the market share of exports to global markets. The strategy also mentions establishing the governance structure / legislation to minimise barriers to developing low carbon hydrogen and derivatives economy and working with investors to consider a mix of financing mechanisms to de-risk and improve profitability and stimulate market uptake of low carbon hydrogen.
The National Council for Green Hydrogen and its Derivatives, which was established in 2023, will monitor the implementation of the strategy.
Sources:
- Egypt's National Low Carbon Hydrogen Strategy – Short Version
- Hydrogen Strategy expected to boost Egypt’s GDP to around $18 billion by 2040
- Gov't announces national low-carbon hydrogen strategy
- Egyptian government announces "National Low-Carbon Hydrogen Strategy"
June 2024: As part of the Strategic and Comprehensive Partnership signed by the EU and Egypt in March 2024, the EU-Egypt Investment Conference was held. The conference is a key platform for discussion on economic reforms in Egypt and to attract further EU investment in key sectors, including production of renewable hydrogen. At the conference, private investment agreements worth EUR 40 billion were announced and signed, including in the hydrogen sector. A Memorandum of Understanding was also signed underpinning EUR 1 billion in macro-financial assistance from the EU for Egypt, which includes supporting Egypt's green transition. Egypt has now signed 32 memorandums of understanding for green hydrogen projects worth around USD 175 million, with around half progressed to framework agreements.
Sources:
- The EU and Egypt team up to mobilise private sector investments at Investment Conference and sign a Memorandum of Understanding underpinning €1 billion in macro-financial assistance for Egypt
- Egypt is serious about green hydrogen
April 2024: Dr. Hala El-Said, Minister of Planning and Economic Development indicated in a speech at a World Economic Forum special meeting on 28-29 April 2024 that Egypt aims to produce 1.5 million tons annually of green hydrogen by 2030, rising to 5.8 million tons by 2040.
February 2024: On 28 February 2024, the Egyptian government signed seven memoranda of understanding with international companies to establish green hydrogen projects in the Suez Canal Economic Zone worth about USD 12 billion in the pilot phase, and about USD 29 billion for the first phases, bringing total investments to about USD 40 billion within 10 years.
Source: Gov't Signs 7 Agreements With Int'l Developers For Green Hydrogen, Renewable Energy Projects
February 2024: On 27 February 2024, the Supreme Council of Energy approved the National Strategy for Low-Carbon Hydrogen to make Egypt one of the leading countries in the low-carbon hydrogen economy in the world. Objectives include to issue approvals for the establishment of green hydrogen projects and its derivatives as well as granting them necessary incentives to attract more investments, to gradually expand the local use of low-carbon hydrogen while increasing the production capacities of hydrogen and its derivatives, leading to the use of low-carbon hydrogen in all sectors, especially industry and transportation, to increase market share of exports to global markets, to export the excess of low-carbon hydrogen over domestic market share to global markets, and to produce low-carbon green hydrogen using 100% renewable energy.
Source: National Strategy for Low-Carbon Hydrogen
January 2024: Law No. 2 of 2024 was issued ("Law"), providing green hydrogen and derivatives projects with certain incentives. These incentives are extended not only to green hydrogen and derivatives projects, but also to the upstream and midstream facilities, of which 95% of the output is to service green hydrogen and derivatives projects and projects exclusively carrying out transportation, storage and distribution of green hydrogen and its derivatives in Egypt. The incentives also extend to projects that directly and exclusively manufacture production input and supplies for the midstream and downstream facilities for which a cabinet decree has been issued. The Law also applies to future expansions of the aforementioned projects.
Source: Egypt: New Incentives for Green Hydrogen and Derivatives Projects - Baker McKenzie InsightPlus
November 2023: Prime Minister Mostafa Madbouly approved the national strategy for green hydrogen during a meeting with the National Green Hydrogen Council. The objective of the strategy is to position Egypt in the global hydrogen market at a notable 5-8%.
Source: National Green Hydrogen Council Approves National Green Hydrogen Strategy
August 2023: Prime Minister Mostafa Madbouly said that Egypt adopted a series of important measures that enabled it to occupy a competitive place in the green hydrogen sector, thanks to the political leadership's keenness on transition to a green economy as outlined in Sustainable Development Strategy (SDS): Egypt Vision 2030.
Source: Egypt takes important measures towards green economy transition
November 2022: Egypt and Germany signed two declarations of intent in the fields of liquefied natural gas (LNG) and green hydrogen to contribute to securing clean energy supplies, achieving sustainable development and confronting climate change.
Source: Egypt, Germany sign 2 declarations of intent in natural gas, green hydrogen fields
August 2022: On 25 August 2022, Egypt Prime Minister Moustafa Madbouly signed seven new memorandums of understanding to establish industrial complexes to produce green hydrogen in Ain Sokhna Industrial Zone. The pacts were signed between various governmental entities, including the New and Renewable Energy Authority (NREA), the General Authority for Suez Canal Economic Zone (SCZONE), the Egyptian Electricity Transmission Company (EETC) and the Sovereign Fund of Egypt and seven renewable energy companies and international consortiums.
Source: President Sisi directs to give priority to green hydrogen projects-SIS
March 2022: The government of Egypt has now expressly recognized the production, storage and export of green hydrogen and green ammonia among the areas falling within the state's economic development strategy. It has also passed a decree that would allow green hydrogen and green ammonia projects to benefit from a wide range of state support under the country's existing Investment Law No. 72 of 2017, including tax incentives. This is a key development for Egypt's hydrogen economy. We expect that it will stimulate private investment and the development of new green hydrogen and ammonia projects in the country.