Egypt’s US$3B green hydrogen project gets the green light

EGYPT – The Ministry of Transport in Egypt has obtained Cabinet approval for a groundbreaking venture aimed at producing green hydrogen.

Developed in collaboration with Belgium’s distinguished energy company DEME, this initiative is a pivotal element of Egypt’s comprehensive strategy to localize the production of green hydrogen and its derivatives, notably green ammonia.

Strategically positioned near the Jarjoub sea port and the Jarjoub Special Economic Zone, the proposed project underscores Egypt’s commitment to leveraging its geographically advantageous position, symbolizing the nation’s aspiration to play a central role in the global energy landscape.

Unfolding in three distinct phases, the initial phase necessitates a substantial investment of up to US$3.1 billion. This significant financial commitment is a testament to Egypt’s dedication to fostering sustainable energy practices and contributing to the broader global effort to combat climate change.

A primary objective of this green hydrogen initiative is to meet the escalating demand for green hydrogen in the European market.

Egypt aims to reinforce its position as a regional and global energy exporter, aligning its ambitions with the growing emphasis on cleaner and renewable energy sources.

Prime Minister Madbouly has expressed unwavering support for the project, emphasizing Egypt’s commitment to providing a conducive environment for the success of DEME within the country.

By aligning governmental support with the objectives of the green hydrogen initiative, Egypt seeks to position itself as a key player in the global transition towards sustainable energy.

Beyond Egypt’s borders, the green hydrogen initiative holds the potential for global impact. As the world seeks cleaner alternatives to traditional energy sources, Egypt’s foray into green hydrogen production signifies a commitment to environmental sustainability and a paradigm shift towards a greener and more resilient future.

In a separate development, the European Investment Bank (EIB) is in discussions with Scatec, a Norwegian renewable energy specialist, to establish a partnership in the realm of green hydrogen production in Egypt.

EIB Vice President Gelsomina Vigliotti shared insights with Daily News Egypt about the ongoing talks and the potential projects that could unfold through this collaboration.

The primary goal of this collaboration is to venture into the burgeoning field of green hydrogen production, aligning with EIB’s commitment to new and renewable energy.

As part of the Nexus of Water, Food, and Energy (NWFE) program, EIB has earmarked €1.3 billion (US$1.43bn) for energy projects, steering away from fossil fuel financing since 2019.

The focus lies on harnessing energy from solar and wind sources, with a keen interest in exploring nitrogen production projects in Egypt.

The potential impact of this collaboration extends beyond national borders, signaling a paradigm shift in Egypt’s energy landscape.

Green hydrogen, a clean and sustainable alternative, holds the promise of transforming the nation’s energy matrix. The financial commitment from EIB, although yet undetermined, hinges on the nature and feasibility of the projects under consideration.

In addition to green hydrogen endeavors, EIB is making substantial contributions to Egypt’s transport sector. The €750 million (US$822.99m) allocated for the Alexandria Metro project underscores EIB’s commitment to sustainable transit.

This funding is part of the broader €1.5 billion (US$1.65bn) financing program, a component of the NWFE initiative.

The ongoing implementation of key projects like the Alexandria-Abu Qir Metro and the Cairo Metro’s first-line extension showcases the bank’s pivotal role in fostering green transitions in the transport sector.

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