In brief: prospective green hydrogen plants in Egypt

CAIRO – 26 April 2022: Minister of Electricity and Renewable Energy Mohamed Shaker stated in October that green hydrogen would be introduced in the 2035 Energy Strategy. Since then, the government made significant steps to turn the plan into a reality.

It is noteworthy to mention that Egypt equally targets to produce green methanol, and green ammonia, specifically as ship fuels, given the special location of Egypt among the other qualifications that enable it to stand out in such fields.

MoU with Siemens  

The Egyptian Electricity Holding Company and Siemens Energy signed in August a memorandum of understanding (MoU) on the development of the green hydrogen industry.

Shaker explained then that the signing of the MoU came after the signing of an agreement of intent between the Egyptian Electricity Holding Company and Siemens Energy in January.

The agreement of intent was the beginning of holding consultations and negotiations on the possibility of implementing a green hydrogen generation project from renewable electricity with a capacity of 100 megawatts or more, through the "EPC+Finance" system.

MoUs with Maersk

Prime Minister Mostafa Madbouli witnessed in March the signing of a memorandum of understanding (MoU) to produce green hydrogen that will be used to fuel ships.

The signing parties are Maersk on one hand, and the General Authority for Suez Canal, the Sovereign Fund of Egypt, the New and Renewable Energy Authority, and the Egyptian Company for Electricity Transmission on the other hand.  

The representative of Maersk stated that the company is preparing 12 ships to be powered by green hydrogen, and that it is interested in building a plant that produces green fuel in Ain Sokhna's economic zone. She added that Maersk targets to attain zero carbon emission by 2040.

MoUs with Norwegian Firms

The prime minister attended in the same month the signing ceremony of two memoranda of understanding (MoUs) to build and operate a green hydrogen plant with a capacity of 100 megawatts at Ain Sokhna Industrial Zone affiliated to Suez Canal Economic Zone (SCzone).

The MoUs were signed between the Sovereign Fund of Egypt; Norway's Scatec ASA specialized in renewable energy systems; Orascom Construction; Fertiglobe; and, the Egyptian Fertilizers Company.

The MoUs provide that Scatec ASA builds and operates the plant, whose output will be supplied to an Egyptian company owned by Fertiglobe, so it would use the hydrogen as a feeding material in the production of green ammonia, 45 metric tons, in accordance to a long-term contract.

MoUs with UAE

Two MoUs were signed by Egypt and UAE in April to build green hydrogen plants in the Suez Canal Economic Zone (SCzone).

The signing parties are the SCzone, the Egyptian Sovereign Fund, the Egyptian Company for Electricity, the Renewable Energy Authority, and Hassan Allam Utilities from Egypt, and Abu Dhabi Future Energy Company (Masdar) from UAE.

Masdar and Hassan Allam Utilities will create a coalition that will implement the project over phases, with the completion date set for 2030. The total planned annual capacity is 480,000 tons of green hydrogen, given that electrolyzers with a capacity of four gigawatts will be installed.

The first phase of the project is planned to also result in producing 10,000 tons of green methanol annually by 2026, to cater for shipping vessels in the Suez Canal and Egypt's seaports on the Mediterranean.

Possible MoU with Toyota Tsushu Corporation on Blue Hydrogen

Japanese Ambassador to Cairo Oka Hiroshi said in April that his country eyes investing in the fields of blue hydrogen and ammonia through Toyota Tsushu Corporation, which already operates in the energy sector in Egypt.

The diplomat further noted that such partnership had been discussed with the Ministry of Petroleum and Mineral Resources, according to a press statement by the Egyptian Ministry of International Cooperation.

Figures on Renewable Energy in Egypt Making the Production of Green Hydrogen Possible

Minister Shaker had indicated that 7,650 square kilometers were allocated to renewable energy projects given the country's potential to produce 90 gigawatts of solar and wind energy.

Shaker clarified that the share of renewable energy in the electricity produced by Egypt hit 20 percent in 2021, although that figure was targeted for the end of 2022. Yet, it is still a long way to go as the target set for 2035 is 42 percent.