Does Egypt Have A Greener Future With Green Hydrogen?

AUTHOR:

IGNACIO CARRERAS Project Development Manager AMEA Power

Around US$1 3 trillion was invested in clean technology in 2022, a figure expected to rise to more than US$2 trillion by 2030 These investments are being driven by the critical need to mitigate climate change, while also ensuring economies maintain their energy security However, if the global community is to achieve its target of maintaining temperatures below the 1.5°C set out by the Paris Agreement, it will require a rapid adoption of low-carbon solutions across all sectors

As the world transitions away from traditional forms of energy, we will see greater penetration of renewable solutions like wind and solar across electricity networks, along with emerging technologies that will support the balancing of the grid For developing countries, the adoption of clean technologies will bring the opportunity for economic and social development as they attract new investment and create jobs

Over the coming decade, we will also begin to see new regional energy powerhouses emerge as governments that introduce policy frameworks and economic mechanisms unlock private investment In the case of Egypt, the government has recognized this opportunity and is working towards increasing the supply of electricity generated from renewable sources to 42% by 2035 With the country having some of the best wind and solar resources in the world, it will drive its economy with clean energy, while opening new avenues to become an energy exporter due to its geographical location as a major trading hub between Europe and Asia

Egypt already has experience in delivering major renewable energy projects In 2019, the country commissioned the 1 6GW Benban Solar Park, one of the largest solar projects of its kind in the world. This experience can be applied to develop other clean energy projects, including green hydrogen, which the Egyptian government is already heavily supporting due to its many applications as an energy carrier.

In November 2022, on the sidelines of the United Nations Climate Change Conference (COP27) in Sharm El-Sheikh, AMEA Power signed a Framework Agreement to develop a large-scale green hydrogen project, which will serve as a feedstock for the production of green ammonia. The plant will be developed in two 500MW phases and once completed will be able to produce 800,000 tons of green ammonia per year for export

The project was one of several green hydrogen projects that the country is working towards, which in total could attract up to US$80 billion of foreign investment and produce around 3 million tons of green hydrogen a year

According to a recent study conducted by European Investment Bank (EIB), in conjunction with the International Solar Alliance and the African Union, Egypt could produce up to 20 million tons of green hydrogen by 2035, making it the biggest producer in Africa.

As the world enters this new era of clean energy deployment, emerging solutions like green hydrogen will present huge opportunities for countries like Egypt to become major hubs for clean energy AMEA Power is working closely with the Egyptian government to support the delivery of its clean energy ambitions. As these first waves of green hydrogen projects come on stream, it will demonstrate the business case for further projects to be developed in the future We are now entering the decade of green hydrogen