Egypt Hydrogen Company, a pioneering firm specializing in the production of green hydrogen from renewable energy sources, is poised to become a major player in Europe’s green energy landscape. The company is eyeing exports to four European nations—Germany, France, Belgium, and the Netherlands—as it strategically expands its hydrogen production capabilities to meet the surging demand across the continent.
Engineer Khaled Naguib, the executive director of Egypt Hydrogen Company, revealed that a pivotal partnership has been forged with the European Hydrogen Bank. This collaboration aims to bolster the cost-efficiency of green hydrogen production, positioning it as a formidable competitor to natural gas in the European market.
Green hydrogen, derived from renewable sources, is hailed as a game-changer in the quest for sustainable energy. However, it comes with production costs that currently surpass those of natural gas by 20% to 40%, and even exceed the expenses associated with gray or blue hydrogen, which is produced with carbon capture technology.
The establishment of the European Hydrogen Bank (EHB) by the European Commission signifies a monumental step towards reducing the continent’s reliance on Russian fossil fuels. This aligns with the European Union’s ambitious goal of achieving climate neutrality by 2050. Through the “REPowerEU” initiative, the EU is accelerating investments in green hydrogen, with a target to locally produce 10 million tons by 2030, in addition to importing the same amount.
Naguib emphasized that Egypt holds a distinct advantage in green hydrogen production. The cost of producing a kilogram of green hydrogen in Egypt stands at a mere two dollars, a fraction of the approximately sixfold higher production cost in Europe. This cost competitiveness positions Egypt as an attractive hub for economical green hydrogen production.
The European Hydrogen Bank has initiated a series of tenders to import green hydrogen from Egypt, tapping into the nation’s capabilities to convert green hydrogen into green ammonia for export. Egypt boasts abundant solar and wind energy resources, making it an ideal location for hydrogen production. Its robust infrastructure, including ports, a skilled workforce, and a well-developed petrochemical industry, is further complemented by its strategic geographical proximity to Europe.
Egypt is poised to capture a substantial share of Europe’s external demand for green hydrogen, estimated at around 10 million tons. This endeavor holds the potential to translate into approximately 60 million tons of green ammonia, marking a significant milestone in Egypt’s journey toward becoming a key player in Europe’s green energy transition.
As Egypt Hydrogen Company leverages these strategic advantages, it is poised to play a pivotal role in Europe’s pursuit of sustainable and green energy sources, ushering in a new era of environmentally conscious energy production and consumption.