The MoU entails a number of activities including production, consumption and trade of renewable hydrogen and its derivatives.
A letter of joint declaration was also signed emphasising that the European Union will provide, as part of its Economic and Investment Plan, up to EURO 350 million in grants in support of Egypt’s Platform for the Nexus of Water, Food and Energy (NWFE).
The Hydrogen Partnership Agreement also aims to facilitate and promote investments in the generation of renewable energy as well as strengthening and extension of electricity grids.
Executive Vice President of the European Commission Mr. Frans Timmersmans said that the signing of the MoU is a new momentum for energy cooperation between the European Union and Egypt.
“The EU is supportive of the development of green hydrogen in Egypt, and in helping the country find the needed funding for that, and create new job opportunities,” he added.
“The world is facing many challenges, and energy transition with the use of green hydrogen is much needed,” he said, adding that this can be done without deindustrialization to allow economic growth.
“We need green hydrogen to make that happen,” Timmersmans stressed.
He said that Egypt is an ideal place for green hydrogen production owing to the huge amounts of electricity it produces and the enormous potential for producing electricity using solar and wind power.
Timmersmans noted that Europe's need for green hydrogen will increase to 20 million tonnes by 2030. He said that ten million tonnes will be produced in Europe, while the rest will be imported from Egypt and other countries.
Kadri Simson, EU’s Commissioner for Energy, added that the EU is set to become a leading producer and consumer of green hydrogen, and is working to meet the expected demand.
“Egypt has a great potential in green hydrogen, as it has an abundance of renewable energy sources. We hope our partnership with Egypt and the signing of this MoU during COP27 will set an example for others,” she added.
Simson pointed out that the EU is working with Egypt to develop the green hydrogen infrastructure and to meet the financial needs.
“We work to make the energy transition just for all, as well as a win-win solution for global challenges, and we are looking forward to seeing the solutions in action,” she said.
Egypt and the EU: partners in the field of energy
Mohamed Shaker, Egypt’s minister of electricity and renewable energy, said that the signing of the MoU on Hydrogen between Egypt and the EU is considered a cornerstone for future cooperation in the field of green hydrogen.
Shaker said that for decades Egypt and the EU have cooperated in the field of energy. This included launching Egypt-EU action plan in 2007, followed by the first strategic memorandum of understanding in the field of energy in 2008. Furthermore, Egypt and the EU have cooperated in preparing and updating the Sustainable Egyptian Energy Strategy 2040, and in providing technical assistance and funding for renewable energy projects.
No country alone can deal with the climate challenges, cooperation and partnerships are very important,” Shaker stressed.
“It is clear that the future of energy is green, and is moving more towards renewable energy and green hydrogen, and technological advances will make green hydrogen production more cost-effective,” Shaker pointed out.
He added that measures have been taken to develop hydrogen in Egypt, as several Memoranda of Understanding (MoUs) have been signed since March 2022 for green hydrogen projects and for financing these projects through loans and grants.
Shaker added that Egypt signed nine framework agreements during the conference’s Energy Day on Tuesday to implement projects for producing green hydrogen and its derivatives with capacities of up to 47,000 MW and investments of up to $85 billion.
The European Union and the Arab Republic of Egypt are jointly cooperating to support Egypt’s aim to generate 42 percent of its electric power using renewable sources by 2035.
The EU is also keen on helping Egypt improve the energy efficiency of electricity generation through programs that aim to maintain, upgrade, and replace obsolete power plants.
By virtue of these agreements, European financial institutions will leverage funds of up to EUR 2 billion to support energy projects in Egypt.