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Green Hydrogen H2 News

Egypt and Saudi Arabia Forge Green Hydrogen Alliance

Anela DoksoBy Anela Dokso08/08/20233 Mins Read
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The Chairman of the Board of Directors of the Egyptian Hydrogen Company, Eng. Khaled Naguib, has called for a strategic partnership between Egypt and Saudi Arabia to establish a strong foothold in the hydrogen market.

Their collaboration could potentially secure a substantial market share in the promising hydrogen sector, aligning with the rising global interest in clean energy sources. With abundant renewable resources and strategic advantages, these nations are poised to play a pivotal role in shaping the future of hydrogen energy.

Eng. Khaled Naguib’s vision centers around the integration of Egypt and Saudi Arabia in the hydrogen market, which could potentially yield a market share of up to $100 billion annually within 3 to 5 years. As the global hydrogen market surges in value from $150 billion in 2020 to a projected $600 billion by 2050, the potential economic impact on these nations is substantial. Egypt’s hydrogen market value, estimated between $200 to $300 billion, underscores the lucrative prospects of this venture.

Both Egypt and Saudi Arabia possess key components for successful hydrogen production: abundant sunlight, advanced infrastructure, proximity to potential customers, and even fossil fuels for hydrogen production. This makes them ideal candidates to supply the hydrogen demands of two energy-dependent continents, Europe and Asia. Europe alone requires 20 million tons of green hydrogen annually, presenting a significant opportunity for these nations to become major players in the global green energy transition.

Eng. Khaled Naguib emphasizes that the collaboration between Egypt and Saudi Arabia is pivotal not only for economic gains but also for addressing climate change challenges. By uniting their strengths, these nations can actively contribute to shaping the emerging green hydrogen market. Unlike the oil market, which has OPEC to regulate it, the green hydrogen market lacks standardized governance. Therefore, the cooperation of Egypt and Saudi Arabia could set the stage for defining industry standards, driving the market’s growth and sustainability.

With the United States and Europe offering incentives for renewable energy investment, the role of hydrogen in energy transitions is gaining prominence. Eng. Khaled Naguib’s call to establish policies, technical specifications, production methods, and storage standards for green hydrogen paves the way for these nations to participate in shaping the industry’s future. By solidifying their positions in the green hydrogen market, Egypt and Saudi Arabia would not only ensure their energy independence but also lead a new energy hub across three continents: Africa, Asia, and Europe.

The collaboration between Egypt and Saudi Arabia in the green hydrogen sector stands as a testament to their commitment to a sustainable and green future. By leveraging their geographical advantages, technological capabilities, and renewable energy resources, these nations could become pivotal players in reducing global reliance on traditional energy sources. Their partnership could drive innovation, accelerate energy transition, and pave the way for a cleaner, greener world.

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