Egypt is making a significant investment of $40 billion to position itself as a key player in the global energy transition, with a strong emphasis on green hydrogen production.

The country's abundant solar and wind resources, coupled with its strategic location, enhance its potential as a major exporter of green hydrogen, particularly to Europe.

In a notable development, Egypt has signed a €7 billion agreement with EDF Renewables and Zero Waste Technologies to establish a large-scale green hydrogen and ammonia facility in Ras Shuqair, which is expected to produce over one million tons of green ammonia annually by 2027.

Additionally, Scatec is collaborating with Fertiglobe and others on a green hydrogen project in Ain Sokhna, aiming to produce 13,000 tons of hydrogen per year using 270 MW of solar and wind energy.

This Scatec project has an estimated cost of $549 million and has recently secured a $33 million grant, with further backing from the European Investment Bank.

Moreover, Masdar, Hassan Allam Utilities, Infinity Power, and bp are exploring a multi-phase green hydrogen project in Egypt, focusing on exports and supported by a framework agreement with the government.

AMEA Power is also establishing a green hydrogen facility in Egypt, which will utilize around 500 MW of renewable energy, primarily aimed at exports to Europe.

In the Suez Canal Economic Zone, SK Ecoplant and China State Construction Engineering Corporation have partnered on a $2 billion green hydrogen and ammonia facility, set to be completed by 2029.

This facility will harness 778 MW of renewable energy to produce 50,000 tons of green hydrogen and 250,000 tons of green ammonia annually.

To support these initiatives, Egypt has established agreements with international developers and introduced favorable laws such as tax credits and VAT exemptions.