The European Bank for Reconstruction and Development (EBRD) is working with the European Union (EU) to support green hydrogen projects in the Suez Canal Economic Zone as part of a new green hydrogen strategy being launched in Egypt.
The plan, which is being developed in partnership with the Ministries of Electricity and Petroleum, is expected to increase Egypt’s gross domestic product by between $10 billion to $18 billion by 2025.
Heike Harmgart, Executive Director of the Southern and Eastern Mediterranean Region at EBRD, spoke to the Middle East News Agency about the initiative, revealing that 19 international companies have already signed memoranda of understanding (MoUs) with Egyptian companies regarding the projects. Nine of these companies have already moved to the stage of drawing up investment frameworks and preparing feasibility studies to turn the MoUs into actual projects on the ground in the Suez Canal Economic Zone.
Green hydrogen is becoming increasingly important as countries look for ways to transition to renewable energy sources and reduce their carbon footprint. The use of hydrogen can be particularly beneficial in hard-to-abate sectors such as heavy industry, transportation, and heating. It can also play a critical role in energy storage, helping to balance intermittent renewable energy sources such as wind and solar power.
Egypt, with its abundant sunshine and wind resources, is well positioned to become a key player in the global green hydrogen market. The Suez Canal Economic Zone is a particularly promising location for green hydrogen projects, given its proximity to major shipping routes and its existing infrastructure for exporting natural gas.