Hydrogen Strategy expected to boost Egypt’s GDP to around $18 billion by 2040: Cabinet

CAIRO – 15 August 2024: The Cabinet announced on Thursday launching Egypt’s National Low Carbon Hydrogen Strategy, stating that it is expected to boost the gross domestic product (GDP) to around $18 billion by 2040.

In a statement, the Cabinet noted that Egypt's Hydrogen Strategy is expected to also help create more than 100,000 new job opportunities by 2040, while supporting transition to green economy.

Prime Minister Mostafa Madbouly highlighted the significance of the strategy and its role in achieving the sustainable development objectives under Egypt Vision 2030.

He added that the strategy aims to strengthen the country’s efforts in diversifying renewable and sustainable energy sources and curbing carbon emissions, in line with Egypt’s international obligations in combating climate change.

Boosting hydrogen production

The Hydrogen Strategy relies on leveraging Egypt's distinctive geographic location and abundant natural resources, especially solar and wind energy, to support the production of low-carbon hydrogen, said the Cabinet.

The strategy also aims to enhance collaboration with international partners and financial institutions to support research, development, and investment in this field.

Additionally, it is expected to play a pivotal role in revitalizing the energy sector in Egypt, attracting foreign investments, creating new job opportunities, and improving economic efficiency in utilizing local resources, added the Cabinet.

The strategy was prepared in collaboration with various international partners, including the European Bank for Reconstruction and Development (EBRD), and its outcomes were presented during the 22nd UN Climate Change Conference (COP27) in Sharm El-Sheikh.

The strategy's action plan includes increasing hydrogen production capacities and its derivatives, gradually expanding local use of low-carbon hydrogen, leading to its utilization across all sectors, particularly industry and transportation.

The plan also strives to increase the market share for exports to global markets.

International partnerships

Since 2022, Egypt has inked numerous multi-billion-dollar agreements with international partners to establish green ammonia and green hydrogen plants on Egyptian soil.

Late in June, the Egypt-EU Investment Conference in Cairo saw the signing of several agreements for renewable energy production as part of the nation’s endeavors to become a leader in the low-carbon hydrogen sector.

In many occasions, officials have expressed Egypt’s aspiration to become a regional hub for the production and exportation of green hydrogen and its derivatives across the region.

 

During the conference, the Sovereign Fund of Egypt (TSFE) and Suez Canal Economic Zone (SCZone) signed four agreements with European developers worth $33 billion to set up green ammonia projects in East Port Said and Sokhna Port.

Moreover, the General Authority for Alexandria Port, Egypt's New and Renewable Energy Authority (NREA), and an international consortium led by Belgium's DEME HYPORT Energy also signed an agreement for the production of green hydrogen and green ammonia.

The project, which requires investments worth €24 billion, including €3 billion allocated for the first phase, will be established in Gargoub, west of Matrouh.