In a cabinet meeting earlier today, Prime Minister Mostafa Madbouly said the country is keen to offer "the largest possible" package of incentives and facilities for green hydrogen production projects.
The country has made great progress in this field.
During COP27, which was held in Sharm El-Sheikh in November, Egypt signed a series of memoranda of understanding (MoUs) with several international entities.
These MoUs are in line with the country's efforts to attract foreign investments into green hydrogen production so that Egypt becomes a transit route for clean energy to Europe.
In today’s meeting, Madbouly called for swiftly announcing the incentives package to activate all MoUs agreed upon and to lure more investments in this sector, according to a cabinet statement.
The awaited package will be included in the national strategy for green hydrogen production – soon to be announced – which aims to enhance Egypt's competitiveness in this field and boost its capabilities, Cabinet Spokesman Nader Saad said.
Madbouly instructed to form of a working group that includes representatives of the concerned authorities to draft the incentives. Recommendations are to be submitted within two weeks, added Saad.
The strategy is almost complete, and work is underway to finish it, said Minister of Electricity and Renewable Energy Mohamed Shaker, who attended the meeting.
He added that lands had been identified to establish the projects based on the MoUs signed with global companies and alliances working in the green hydrogen field.
Egypt has the potential to generate some 350 gigawatts of wind energy and about 650 gigawatts of solar energy, Shaker added.
Egypt aims in the coming years to reduce carbon emissions, promote the use of renewable energy sources, and use alternative energy forms, including green hydrogen, as part of its National Climate Strategy 2050.
The strategy should help Egypt produce green hydrogen with the least cost worldwide for $ 1.7 per kg by 2050 instead of $2.7 per kg in 2025, according to previous statements by the government.
It will pave the way for implementing an ambitious plan to gain 8 per cent of the global hydrogen market.
The strategy targets increasing the Gross Domestic Product in Egypt to between $10 billion and $18 billion by 2050, generating more job opportunities and reducing oil imports.