With a developing population and demand for energy, it is expected to grow globally by 47% through 2050 according to the U. S. Energy Information Administration. In the US, Egypt aims to produce 42% of its energy from renewable resources by 2035, an ambitious target announced at COP26 last year. . .
In order to combat climate substitution and fossil fuel subsidies, the North African country has embarked in recent years on a dynamic of building a green hydrogen industry. The Minister of Electricity and Renewable Energy has called 2022 “the year of green hydrogen”.
But what is green hydrogen, how is it produced and can Egypt be a global producer?
Hydrogen is a colorless, odorless and highly flammable fuel that is generated by a chemical process of electrolysis. Electricity is used to break down water molecules (H2O) into oxygen (O2) and hydrogen (H2).
There are many types of hydrogen and they are classified by colors. Green hydrogen is generated through renewable energy that does emit carbon dioxide or waste into the atmosphere. Thus, it contributes to the decarbonization of the planet, which sees 830 million tons of CO2 emitted annually.
Hydrogen can be used in industries, adding others that consume a lot of energy, such as the production of metal and iron, cement, paper and aluminum. It can also be used as a target fuel for vehicles, aircraft and spacecraft.
The main characteristics of hydrogen make it a favorable fuel of choice, but it has a number of disadvantages.
Egypt, host of COP27, has signed more than a dozen agreements with foreign corporations to build green hydrogen plants in the Suez Canal Economic Zone (SCZone). The corporations come with Norway’s Scatec, Danish shipping company Maersk, France’s EDF Renewables and Emirati renewable energy. Corporate Masdar.
Most recently, the Qatar Investment Authority (QIA) said it is contemplating making an investment in an allocation of hydrogen and green ammonia in SCZone, according to media reports.
Some of Egypt’s initial agreements on green hydrogen are expected to become binding agreements at COP27. The Egyptian government will also announce a national hydrogen strategy at the conference.
Egyptian President Abdel Fattah al-Sisi first ordered the progression of the strategy in 2021. Since then, SCZone, Egypt’s Ministries of Oil, Electricity and Renewable Energy and sovereign wealth fund have been cooperating to identify this novelty in Egypt.
The European Bank for Reconstruction and Development (EBRD) worked with the government to draft the strategy, which “will pave the way for Egypt to become one of the world leaders in the low-carbon hydrogen economy, gaining a market share of 8% of hydrogen traded worldwide. “
Egypt’s green hydrogen production will open up a host of export opportunities amid developing global demand, a tantalizing prospect for the most populous Arab country that recorded an existing account deficit of $16. 6 billion in the last fiscal year that ended June 30.
According to the Egyptian cabinet, the new strategy will see green hydrogen contribute between $10 billion and $18 billion to Egypt’s GDP by 2025.
By then, the charge for generating hydrogen in Egypt would be $2. 7/km, which will be reduced to $1. 7/km more competitive in 2050.
The strategy will generate 100,000 jobs and the country’s dependence on hydrocarbons, according to the cabinet.
Egypt has demonstrated qualities that may justify it in achieving its green hydrogen aspirations, adding the overwhelming and economical burden of the sun and wind, in addition to its location on the Mediterranean.
. . . pave the way for Egypt to become one of the world leaders in the low-carbon hydrogen economy.
“The African continent is very rich and varied in terms of resources. All countries have their competitive characteristics and potential for progression. As far as Egypt is concerned, local governments have shown a strong will and determination to act against climate change,” said EDF Renewables. in a submission to The Africa Report.
He added: “Egypt has abundant renewable energy resources generated from wind and solar resources, in addition to its physically powerful transmission grid and geographical location.
“Egypt has a strong position and stores the non-unusual values of global climate action. By hosting COP27, Egypt affirms its ambitions to be an indispensable turning point in the foreign climate effort.