Egypt is advancing its low-carbon energy ambitions with a significant allocation of land in the Red Sea Governorate to support green hydrogen development and associated infrastructure.
The Cabinet approved the transfer of 251.73 acres for a green hydrogen production facility, 50.17 acres for a dedicated marine pier, and 173.92 acres to implement the electricity transmission route. This decision reflects a strategic push to position Egypt as a regional hub in the emerging global hydrogen economy.
The land allocation supports the objectives outlined in Egypt’s National Low-Carbon Hydrogen Strategy, launched in August 2024, which targets an annual green hydrogen output of 5.8 million metric tons. Analysts project that achieving this level of production could attract investments up to $60 billion and secure Egypt a 5-8% share of the global hydrogen market by 2040. These figures align with the broader push across North Africa and the Middle East, where abundant solar and wind resources are increasingly leveraged for green hydrogen generation.
One of the primary challenges facing large-scale hydrogen deployment is the integration of renewable energy with reliable transport and storage infrastructure. By earmarking land for a marine pier and electricity transmission corridor, the government is addressing the logistical bottlenecks that often hinder project scalability. Direct access to port facilities is critical for export-oriented hydrogen projects, as global trade in green hydrogen relies on efficient loading, storage, and shipping of liquid or ammonia-converted hydrogen.
Egypt’s approach also highlights the strategic importance of energy diversification in national economic planning. Green hydrogen production supported by dedicated infrastructure can help reduce reliance on fossil fuels, limit carbon emissions, and stimulate domestic industrial growth. The planned electricity transmission corridor indicates an understanding of the high energy intensity required for electrolysis-based hydrogen production, ensuring that renewable power can be delivered consistently to the facility.
Experts observing regional hydrogen initiatives note that the success of such projects depends on harmonizing regulatory frameworks, financing mechanisms, and supply chain readiness. Egypt’s proactive land allocation signals a step toward creating an enabling environment for private sector investment, mitigating one of the key risks in early-stage hydrogen development. With projected global hydrogen demand expected to exceed 130 million metric tons by 2030, the timing of Egypt’s investments positions the country to capture both market share and foreign direct investment.
