Green hydrogen to be introduced in Egypt's 2035 Energy Strategy

CAIRO – 20 October 2021: Minister of Electricity and Renewable Energy Mohamed Shaker stated Wednesday that green hydrogen will be introduced in the 2035 Energy Strategy.

Shaker added 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.

The minister's statements came during a meeting with the COO of Lekela Power Chris Ford. The company's work is focused in the wind energy sector, and it has been operating in the Suez Gulf area in Egypt.

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.

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.

Future steps include preparing a national strategy for hydrogen in Egypt, as well as developing an action plan to implement the strategy and studying opportunities to localize the hydrogen industry in Egypt in partnership with international expertise.

In October, Egypt’s Sovereign Fund, the Norwegian company “Scatec” for renewable energy, and the Fertiglobe company, a merger of OCI N.V. and UAE's "ADNOC” signed an agreement to produce green hydrogen in quantities ranging from 50-100 megawatts, as a feedstock for the production of green ammonia.

Under the agreement, the Norwegian company Scatec will build and operate a green hydrogen production facility with quantities ranging from 50 to 100 megawatts.

The production will be supplied to Egypt Basic Industries Corporation (EBIC), which is owned by Fertiglobe, which will use green hydrogen as a supplemental feedstock to produce more than 45 metric tons of green ammonia per year under a long-term purchase contract.

According to the agreement, the ownership structure of the project is divided between the Norwegian company “Scatec”, which will own a majority stake in it, the Sovereign Fund of Egypt, and the “Fertiglobe” company owned by Sawiris.

The project will be located near the facilities of Egypt Basic Industries Corporation “EBIC” in the industrial zone located in Ain Sukhna.