Deal to build Green Hydrogen Plants in Egypt on behalf of Masdar, UAE
The world’s energy sector is on the brink of a technological revolution, transforming the energy market. Hydrogen has emerged as the preferred mode of transferring low-cost renewable energy throughout the world. Due to the distinctive characteristics of GCC states, they can potentially dominate the hydrogen sector. Masdar has signed a deal with Egypt to build green hydrogen facilities. Egyptians have access to an abundance of solar and wind energy, allowing them to produce renewable energy at low costs.
Green hydrogen consumption is set to augment dramatically in the near future, reaching around 530 million tonnes. By 2050, it may substitute approximately 10.4 billion barrels of oil equivalent. Hydrogen has several applications and may be used in industries like manufacturing and transportation. By 2030, Egypt hopes to have a 4-gigawatt electrolyzer capacity.
Signing Two Preliminary Agreements
Two preliminary agreements have been signed between Masdar, Hassan Allam Utilities, and an Egyptian company. They will work together to build green hydrogen power plants in the Suez Canal Economic Zone and the Mediterranean coast. The firms want to create a green hydrogen production plant capable of generating 100,000 tonnes of e-methanol yearly for Suez Canal bunkering in the first phase, according to a statement issued late Sunday by Masdar. The contract highlights the UAE and Egypt’s tight ties.
Egypt Adds Hydrogen to Its Green Energy Ambitions
In recent months, Egypt has increased its efforts to develop green hydrogen projects. It will conduct the Cop27 climate meeting in Sharm El Sheikh this November. Egypt agreed to a $3 billion deal with a partnership led by EDF Renewables of France and Zero Waste of Egypt. With this investment, they will build a megaproject of green hydrogen near Ain Sokhna on the Red Sea. For ships traveling through the Suez Canal, the project will create up to 350,000 tonnes of green fuel every year.
Decarbonization Efforts of the Two Nations Take a Crucial Step Forward
Egypt has rich natural resources, allowing for the cost-effective production of renewable energy. They position Egypt as a critical driver of renewable hydrogen generation. Since it is adjacent to locations where green hydrogen demand is soaring, the country may be able to increase exports to Europe. As both the UAE and Egypt move toward a sustainable economy based on hydrogen, these agreements represent a significant step forward. It will play a crucial role in both countries’ efforts to reduce carbon emissions. Egypt can contribute to the worldwide energy transformation and assist the green hydrogen industry reach its potential in the near future by cooperating with Hassan Allam Utilities.
Setting Up a Green Hydrogen Manufacturing Facility Using Cutting Edge Technology
Egypt intends to use this relationship with Masdar to leverage cutting-edge technology to make a difference in the country. It will make use of the abundant supply of green energy. Furthermore, Masdar has made investments in a range of renewable energy assets. It has a combined value of over $20 billion and an overall capacity of above 15GW. Annual hydrogen sales are currently worth roughly $174 billion, with a potential market value of $600 billion by 2050.