China and Egypt are attempting to strengthen their commercial and business ties in a number of sectors of shared interest, including clean energy and green hydrogen.
The $5 to $8 billion project will be established by the China International Energy Group (CIEG) to manufacture green hydrogen in the country of North Africa.
During a meeting between CIEG Chairman Ye Jianming and Egyptian President Abdel Fattah El-Sisi, topics such as water treatment facilities, desalination, power and renewable energy, and transportation infrastructure were also covered.
Ye, who was joined by a group of senior CIEG officials, continued by stating that Egypt had a lot of promise in the field of renewable energy.
Before COP27, Egypt submitted an updated Nationally Determined Contribution (NDC) in June of last year. Increased spending on green technologies, cleaner energy sources, and energy efficiency are the results of hosting the COP.
Egypt is increasing the number of solar energy installations throughout the nation, which helps increase access to clean and reasonably priced electricity.
Egypt’s commitment to the NDC is for a 33% reduction in emissions in the energy sector. By 2030, the country will lose the equivalent of (70 Mt CO2e), 1.7 Mt CO2e (65%) from the oil and gas industry, and 7% from the transportation industry (9 Mt CO2e). This is contrasted with a method that relies on conditional outside assistance and is business as usual.
In order to generate 42% of the nation’s electricity by 2035, extra renewable energy capacity will be installed.
Bringing clean energy to life
Egypt has been engaged in a flurry of activities to accomplish these goals, and following his meeting with the Chinese delegation, Minister of Electricity and Renewable Energy Mohamed Shaker of Egypt had a meeting with Stefan Wenzel, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action of Germany.
At the meeting, expanding electric and renewable energy cooperation between the two nations was discussed.
Egypt declared an ambitious aim to own 5% of the world’s hydrogen market by 2040, which prompted the gathering. Egypt signed eight framework agreements to create green hydrogen and ammonia projects at the COP27 climate meeting.
In March, the United Arab Emirates, Mauritania, and Egypt were included in a new green hydrogen project unveiled by the German investment firm Conjuncta.
The facility, which will be northeast of Nouakchott, the capital of Mauritania, is anticipated to produce 10 gigawatts. Conjuncta claims that in addition to energy from the plant, the facility will also export ammonia.
Egypt intends to increase its natural gas exports in 2022–2023; the nation’s Finance Minister, Mohamed Mait, noted that the goal is to achieve $1 billion each month during the next year.
To remain environmentally safe and competitive in the market, the nation is also attempting to decarbonize its petrol. To increase energy security, Egypt is likewise looking to diversify its energy supply.
As the movement to reject polluting fuel sources picks up steam, the world is changing. Companies that participated in the COP27 negotiations for some of Egypt’s nine green hydrogen and ammonia facilities are anticipated to sign the contracts in the second quarter of this year.
In order to put Egypt’s objectives into perspective, it should be noted that Africa has a huge potential for renewable energy due to its abundance of sun and wind. Yet, many nations that cannot match Egypt’s might may find it challenging to produce green hydrogen due to Africa’s relative lack of development.
