Today, the Ministry of Electricity and Renewable Energy signed contracts with global and local alliances for 4 mega projects to launch projects to produce fuel from green hydrogen, with investments estimated at $30 billion.
High-ranking sources in the ministry revealed that the entities signed with today include the Emirati “Masdar”, the Saudi “ACWA Power”, and other local and international companies that have not been disclosed.
The sources added that the total capacities of the four prospective projects amount to about 8,000 megawatts, explaining that the signing today comes as an implementation step for the framework agreement between government agencies in Egypt and companies to develop a green hydrogen project.
She pointed out that the companies are still conducting measurements and studies on the lands for the projects in preparation for obtaining them and starting the privatization procedures, explaining that the bulk of their production will be destined for export.
Dr. Mohamed Shaker, Minister of Electricity and Energy, had made it clear in statements to Al-Mal that the ministry aims to be part of the solution to the global energy crisis in light of the strategic plans to expand green hydrogen projects after signing memorandums of understanding, which are the largest in the world, with capacities of up to 24 1,000 megawatts of electrolysis capacity, with investments amounting to $85 billion.
Shaker added that Egypt has the capacity to produce green hydrogen at the lowest cost in the world, starting from $2.68/kg in 2025, and the returns for the ministry’s strategy to expand these projects are represented in increasing Egypt’s gross domestic product in the range of (10-18) billion. dollars by 2025.
The projects will also contribute to creating more than 100,000 new jobs in the event of increased use of local capabilities in the hydrogen industries, and contribute to reducing Egypt’s imports of petroleum materials, and achieving national targets related to reducing carbon emissions, thus enhancing Egypt’s contribution to achieving the global target related to reducing carbon emissions. Global subscribers by 55 million tons annually by 2050. The total subscribers of the Ministry of Electricity reach 38 million, and the domestic sector accounts for the lion’s share of it, followed by commercial, industrial and governmental, while Egypt’s total production of electric energy is approximately 60 thousand gigawatts, and the surplus is 25 thousand megawatts.