In Egypt, the hydrogen produced from so-called gray natural gas, which amounts to 1.8 million tonnes per year, is mainly used as an energy vector in industry for the production of ammonia, the production of fertilizers , steel production and refining activities.
Egypt is seeking to position itself as an appropriate geography to develop green hydrogen projects there, which beyond industrial uses, will aim to decarbonize the fleets of ships passing through the Suez Canal. Cairo also wishes to take advantage of this to consolidate its position as an energy hub, by developing a hydrogen and green fuel production sector for export.
The authorities signed 16 memorandums of understanding with multinationals in the spring of 2022 and 9 were the subject of framework agreements at COP27, with the emirates Masdar and AMEA Power, the Australian Fortescue Future Industries, the Norwegian Skates , the French TotalEren and EDF Renouvelables, the Indian ReNew Power, the British Globeleq and the Saudi Alfanar.
While all of these agreements ultimately target the theoretical production of 7.6 and 2.7 million tonnes of ammonia and green hydrogen respectively, for a total investment estimated at $83 billion, they in no way constitute binding commitments.
Final investment decisions are expected in the coming months/years. The most advanced project, the one developed by the consortium formed by Scatec, Fertiglobe and Orascom, was gradually commissioned on the sidelines of COP27.
Partly financed by an €80 million loan allocated by the EBRD, it aims to produce green ammonia for the fertilizer industry from 100 MW of electrolysis.
During COP27, Egypt published a first draft of its national hydrogen strategy. The authorities thus want to capture 8% of the global green hydrogen market by 2040. In a second phase, this strategy should respond to the concerns of developers: wheeling agreements should be announced and land allocated.
Beyond energy companies, several States are seeking to secure volumes of green hydrogen in their close geographical surroundings, primarily European countries. The EU, which aims to import 10 million tonnes of green hydrogen by 2030 as part of the RePower EU strategy, signed at COP27 a memorandum of understanding with Egypt for the establishment of a long-term strategic partnership on green hydrogen.
Source : Embassy of France in Egypt