Egypt prepares hydrogen production for Europe

Masdar, the state-owned renewable energy company from the United Arab Emirates, has declared its intention to realize up to 4 GW of green hydrogen electrolyzer capacity in Egypt by 2030. Close to Europe, the country offers good conditions for renewable energy.

Together with Egyptian infrastructure company Hassan Allam, Masdar has signed a memorandum of understanding for the future production of hydrogen in the Arab country, with a particular focus on export to Europe. The signing ceremony was attended by Egyptian Prime Minister Mostafa Kamal Madbouly, Emirates Technology Minister Sultan bin Ahmed Al Jaber and Egyptian Energy Minister Mohamed Shaker El-Markabi, among others.

Egypt could become a leader in the production of "green" hydrogen due to its geographic advantages in renewable energy sources such as wind and solar power. Its geographical proximity to Europe, which will increasingly rely on the gas in the future, is another locational advantage. The Mediterranean and Suez Canal regions are being considered as locations for the electrolysis units, Masdar said in a statement. With an electrolysis capacity of 4 GW, an annual volume of up to 480,000 tons of hydrogen could potentially be produced on site, it said.

As a first step, the partners plan to build a production plant for 100,000 tons of e-methanol per year. The planned electrolysis capacities could also produce 2.3 million metric tons of ammonia annually for export, Masdar said.

Germany is also increasingly looking to the Arab region in its efforts to ramp up the hydrogen economy. Just recently, during a visit to the United Arab Emirates, German Economics Minister Robert Habeck explored possible new or increased opportunities for H2 cooperation between Germany and the Arab country.