The Information and Decision Support Center of the Egyptian Cabinet issued a report where it predicted a rise in Egypt’s GDP between US$10 to $18 billion as a result of a nearly seven-fold increase in the green hydrogen economy by 2050.
According to the report issued on Tuesday, Egypt ranked fifth in the Arab world and North Africa in the green hydrogen index of Fitch Solutions for 2022.
The report reviewed the most important legislative framework promoting green hydrogen projects in countries such as Germany, South Korea, the European Union, India, France, Chile and the United States.
The Information Center confirmed that Egypt is one of most the promising countries in the field of green hydrogen, with potential to attract domestic and foreign investments in this field – especially in light of its future plans in green hydrogen projects.
This highlights the importance of providing a legislative framework to regulate hydrogen production projects and its various uses in Egypt, to maximize its integration into the global market for green hydrogen production.
Fitch also confirmed that Egypt is a pioneering country in green hydrogen projects, amounting to 11 projects with a capacity of 10.3 gigawatts.
The agency’s expectations also show that green hydrogen projects will enhance Egypt’s attractiveness to foreign investments in renewable energy sources.
Over the next decade, electricity consumption will continue to grow with a surplus in production and increased investments in inter-transmission networks.
Egypt’s exports of electricity to neighboring markets and to Europe are also expected to increase.
In its 2021 report, the European Bank stated the importance of gas infrastructure and Egypt’s large investments in gas, in addition to the possibility of mixing green hydrogen in available gas networks.
This indicates the possibility of directing current natural gas assets to support green hydrogen production, and the availability of clear incentives to explore green hydrogen.
