Egypt, by signing 8 framework agreements, aims to become a hub for hydrogen production. Indeed, the country wants to conquer 5% of the world market by 2040.
A political will
In Egypt, the agreements signed include companies such as AMEA Power, Alfanar, Globeleq, Fortescue Future Industries (FFI), ReNew and Scatec. The agreements also concern the French companies TotalEnergies and EDF. In addition, they are concentrated around the Red Sea port of Ain Sokhna and the Suez Canal.
The agreements come as Egypt announced the outline of a low-carbon hydrogen strategy. They are supported by the Egyptian Sovereign Wealth Fund and the European Bank for Reconstruction and Development. Egypt’s Minister of Electricity, Mohamed Shaker, says:
“The strategy has a vision that Egypt will be one of the world leaders in the low-carbon hydrogen economy.”
Challenges
The strategy outline indicates that the main sources of Egypt’s future hydrogen demands include fertilizer and ammonia. The strategy also includes methanol for use as a marine fuel. Finally, it is banking on energy exports.
However, barriers to the development of a hydrogen economy include the scarcity of fresh water. The difficulty also lies in the distances. Indeed, Egypt will face the challenge of connecting renewable hydrogen production sites and seaports.
