Potential of Green Hydrogen in Egypt

AUTHOR:

ROMAIN RICHE Head of Asset Management, Operations and Maintenance, EDF Renouvelables

Green hydrogen is one of the decarbonized fuels of the future and is expected by many to significantly contribute to the energy transition Green H2 storage can unlock additional benefits from renewable power generation, being a solution to the intermittency issue and therefore is expected to play a pivotal role in meeting the global target of net zero by 2050

Alongside the UN COP27 Climate Conference, the Egyptian government developed with EBRD a national low-carbon hydrogen strategy It was stated it aims to help Egypt contribute eight percent to the global hydrogen market by achieving a production capacity of 1 4GW by 2030, to be used to meet local demand and exports

Egypt is on the way to becoming a global powerhouse in the green energy value chain and a major exporter of low-carbon hydrogen given its potential to produce considerable volumes at a competitive rate

The country has a strategic advantage, having the right mix of components to deliver successful green hydrogen projects

Renewable generation capacity

Egypt has abundant renewable energy resources to generate input electricity for green hydrogen It has large surfaces of land and consistently high wind speeds and high levels of solar radiation

Cost competitiveness

Taking into account the current cost of green electricity accounting for 70% of the green H2 cost, the high level of renewable energy resources and project scales promise to reduce the most significant input cost for green hydrogen production.

In October 2022, the Minister of Electricity and Renewable Energy highlighted Egypt’s potential of producing green hydrogen at the lowest cost in the world by 2050, saying that its price could stand at $1 7 per kg

Egypt is strategically located across different energy markets Its proximity to Europe and the Middle East makes the country a major potential global export hub for green and clean energy It has in place connecting infrastructure that could be utilized for the transportation and/or storage of hydrogen or its derivatives (such as ammonia) The country is working on turning the Suez Canal into a “green route” to become a transit route for clean energy

As it stands, Egypt’s production of green hydrogen stands at zero, while renewable energy sources account for 11% of the country’s total electricity matrix

During Cop27, Egypt has seen dozens of initial agreements and memorandum of understanding (MoU) to produce green hydrogen in the zone. Some estimates put the value of green hydrogen and ammonia projects in the pipeline between $60 to $80 billion The market momentum is building fast and now is the time to translate the paper into action

Among many projects, EDF Renewables is developing a large project for green hydrogen and ammonia production in Egypt Over 2 GW of renewable energies will be deployed to power 700 MW electrolyzer and ammonia synthesis plants with clean electricity, generating 80,000 tons per year of green hydrogen and derivative in the Suez Canal Zone This project will contribute to EDF’s recent Hydrogen plan to develop a 3 GW electrolysis capacity by 2030. EDF Renewables is proud to thrive Egypt’s sustainable ambitions by creating local job opportunities in the country and are actively supporting the decarbonization process of the industries