India’s Ocior Energy company has recently entered into significant agreements, pledging a substantial investment of four billion dollars for the establishment of green hydrogen production facilities within Egypt’s Suez Canal Economic Zone. The realization of this substantial investment is contingent upon the successful finalization of contracts for the envisioned project, which is expected to be concluded in the coming months.
The Suez Canal Economic Zone, a prominent industrial hub in Egypt, encompasses four key industrial zones: East Port Said, West Qantara, East Ismailia, and Sokhna. It also includes six strategically positioned ports: West Port Said, East Port Said, Arish, Adabiya, Sokhna, and Al Tur.
The announcement was made during the UNCOP27 climate change summit held in Sharm el-Sheikh. Egypt, at this event, unveiled a series of initiatives focused on green hydrogen and other climate-related funding ventures. These announcements underscore Egypt’s commitment to advancing environmentally friendly technologies and practices.
Foreseeing significant foreign direct investment inflows, the Egyptian government anticipates that green hydrogen projects will garner around $81.6 billion in foreign direct investments by the year 2035.
To accelerate the realization of these ambitions, the Egyptian government has developed an intricate national strategy dedicated to green hydrogen integration. This strategic approach aims to seamlessly incorporate green hydrogen into the country’s comprehensive 2035 energy strategy, which aligns with the broader objectives of achieving carbon neutrality and substantial emissions reduction within the energy sector.
Notably, Egypt boasts a unique advantage in the realm of green hydrogen production. The country is positioned to achieve remarkable cost efficiencies in producing green hydrogen, with cost estimates projected to plummet from $2.7 per kilogram in 2025 to a mere $1.7 per kilogram by 2050. This substantial cost reduction is poised to significantly impact both the global green hydrogen market and Egypt’s own energy landscape.
Beyond economic advantages, this strategic thrust is projected to curtail Egypt’s reliance on imported petroleum products and, in parallel, significantly mitigate carbon emissions, aligning with the nation’s broader environmental commitments.
The collaboration between India’s Ocior Energy company and Egypt’s ambitious green hydrogen vision underscores the growing global recognition of green hydrogen’s transformative potential and the pivotal role it plays in shaping a sustainable energy future.
