Egyptian Parliament Committee approves draft law regarding incentives for green hydrogen projects

CAIRO – 25 December 2023: The Energy and Environment Committee of the House of Representatives, headed by MP Talaat Al-Suwaidi, finally approved a government-drafted bill regarding incentives for green hydrogen projects and its derivatives.

The draft law provides tax and non-tax incentives, in light of Egypt’s direction towards optimizing the production, use and export of clean green energy and establishing projects for the production of green hydrogen and its derivatives like green ammonia and green fuel.

Two days ago, President Abdel Fattah El-Sisi was briefed on the government’s efforts to implement the national strategy for green hydrogen, said Spokesman for the Presidency Ahmed Fahmy in a statement.

The strategy aims for Egypt to become one of the leading countries in the low-carbon hydrogen economy in the world, which will allow the creation of more jobs, increase national income in the coming years, and reduce emissions, in line with national efforts to protect the environment.

The President gave directives for the government to begin implementing the projects that had been agreed upon, and provide the necessary infrastructure for them, stressing that shifting to sustainable energy is one of the basic elements of Egypt’s Vision 2030, and reflects Egypt’s interest in comprehensive development, in addition to its economic returns, which represent a real addition to national development.

Last month, the National Green Hydrogen Council officially approved the National Green Hydrogen Strategy.

By aiming to capture 5 to 8 percent of the global hydrogen market, the country seeks to make significant contributions to the reduction of carbon dioxide emissions, targeting a decrease of 40 million tons annually.

The strategy also sets ambitious goals for job creation, aiming to generate 100,000 employment opportunities by 2040. Furthermore, it aspires to boost the gross domestic product by $10 to $18 billion.