Egypt's green hydrogen momentum surges with USD 40bn in new pacts

Egypt's government on Wednesday signed seven cooperation agreements with developers for green hydrogen and renewable energy projects in the Suez Canal Economic Zone which could lead to over USD 40 billion (EUR 37.01bn) in investments over the next ten years.

The pilot phase of the proposed projects is estimated to attract investments worth USD 12 billion while the first phase could potentially see an additional USD 29 billion, according to a Cabinet statement.

Do you know we have a daily hydrogen newsletter? Subscribe here for free!

The developers who signed the seven memoranda of understanding (MoUs) include Bash Global, Smart Energy, Gamma Construction and Meridiam, SK E&C Plant-C&C North Africa, El Tokkel Geela, AMM Power, and United Energy Group.

The signing ceremony was witnessed by prime minister Mostafa Madbouly at the government headquarters.

On behalf of the Egyptian government, the pacts were signed by the Sovereign Fund of Egypt (TSFE), the General Authority for the Suez Canal Economic Zone, the New and Renewable Energy Authority (NREA), and the Egyptian Electricity Transmission Company.

On the sidelines of the ceremony, planning minister Hala El-Said said that the signing marks the beginning of new investment partnerships and projects, all contributing to achieving the goals of the national strategy for green hydrogen.

TSFE's CEO Ayman Soliman commented that the Fund continues to garner growing and sustained interest from investors in green hydrogen projects. The signing underscores companies' heightened enthusiasm to participate in Egypt's green hydrogen programme and reflects the state's progress in the right direction following the creation of a comprehensive programme supported by all state authorities, Soliman noted.

The North African country has signed numerous pacts with international players for the development of green hydrogen and ammonia projects over the last two years as it seeks to become a green energy hub. At the beginning of this year, the government approved a law introducing tax and non-tax incentives for the production of green hydrogen and its derivatives in a bid to expedite the progress of planned projects and attract new investors.