Renewable energy projects that are currently being carried out by Egypt’s private sector are worth USD 4.4 billion, the Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker announced.
The Minister stated that these projects aim to increase the nation’s renewable energy capacity to 10,000 megawatts (MW) by the end of 2025. As of 2022, the total renewable energy capacity in Egypt amounted to 6,322 megawatts.
Egypt is looking to export up to 5.6 million tons annually of green hydrogen, with the aim of reaching 8 percent of the global market’s share of hydrogen, he said, adding that the government will submit to the parliament the green hydrogen projects’ incentives during the current session.
Egypt announced plans to reduce carbon emissions and promote the use of renewable and alternative energy sources, including green hydrogen, as part of its National Climate Strategy 2050.
The Egyptian government expects that total foreign direct investment (FDI) into green hydrogen projects will hit about USD 81.6 billion by 2035. It aims to produce green hydrogen at the lowest cost worldwide by 2050 at USD 1.7 per kg.
In August, the Egyptian cabinet approved a draft law on the establishment of a national council for green hydrogen, which is hydrogen produced by the electrolysis of water using renewable electricity, and its derivatives.