The Information and Decision Support Center of the Egyptian Cabinet has released a report projecting a substantial rise in Egypt’s GDP, ranging from US$10 to $18 billion, by 2050, attributed to a nearly seven-fold increase in the green hydrogen economy.
According to the report published on Tuesday, Egypt secured the fifth position in the Arab world and North Africa for the green hydrogen index, as evaluated by Fitch Solutions in 2022.
The report extensively reviewed the legislative frameworks driving green hydrogen projects in several countries, including Germany, South Korea, the European Union, India, France, Chile, and the United States.
The Information Center emphasized Egypt’s promising potential in the green hydrogen sector, making it an attractive destination for both domestic and foreign investments. Egypt’s ambitious plans for future green hydrogen projects further bolster its standing in the global market for green hydrogen production.
Fitch Solutions also recognized Egypt as a pioneer in green hydrogen initiatives, with 11 projects already underway, boasting a total capacity of 10.3 gigawatts.
The agency’s projections highlight that these green hydrogen projects will not only enhance Egypt’s appeal to foreign investments but also strengthen its position in the renewable energy sector. With an anticipated increase in electricity consumption over the next decade, Egypt is expected to experience a surplus in production, leading to further investments in inter-transmission networks.
Moreover, the report foresees a rise in Egypt’s electricity exports to neighboring markets and Europe, adding to its potential economic growth.
In line with the European Bank’s 2021 report, Egypt’s significant investments in gas infrastructure and assets will be pivotal in supporting green hydrogen production. The possibility of integrating green hydrogen into existing gas networks presents opportunities to leverage current natural gas resources effectively.
The availability of clear incentives to explore green hydrogen further bolsters Egypt’s position in the global race towards sustainable energy solutions. As the nation continues to develop its green hydrogen projects, the establishment of a robust legislative framework will be essential to regulate hydrogen production and optimize its integration into the international green hydrogen market.
