Friday 18 Oct
Dr. Rania Al-Mashat, Minister of Planning and Economic Development, witnessed the signing of a grant agreement for a green hydrogen project in Egypt between Scatec and the PTX Hydrogen Initiative, in the presence of Engineer Tarek El Molla, Minister of Petroleum and Mineral Resources, and Svenja Schulze, Federal Minister for Economic Cooperation and Development.
The agreement will see the
project funded by a grant provided by the PTX Hydrogen Initiative, which was
previously launched by the German Federal Ministry for Economic Cooperation and
Development with a value of €270 million for Egypt and six other partner
countries, to provide grants for industrial projects at various stages along
the green hydrogen value chain.
The project aims to stimulate the
green transition in the Suez Canal Economic Zone and lead the country towards
climate neutrality in resource- and energy-intensive industries while enhancing
the creation of local value by taking advantage of the abundant availability of
wind and solar energy. In addition, the project is expected to create 1,330 job
opportunities in the construction, operation, and maintenance phases of the
project, and is expected to produce 70,000 tons of green ammonia annually
(equivalent to 140,000 tons of carbon dioxide annually, equivalent to 3 million
tons over its production life) and lay the foundation for the sustainable
transformation of the entire industry in Egypt.
In her speech, Dr. Rania
Al-Mashat emphasized that the signing of the grant agreement between Scatec and
the PTX Hydrogen Initiative for the 'Green Hydrogen in Egypt' project is a
testament to the ongoing, productive collaboration between the Egyptian
Ministry of Planning and Economic Development and International Cooperation and
the German Federal Ministry for Economic Cooperation and Development.
She further highlighted that
green hydrogen, as a promising carbon-free fuel, is gaining substantial global
attention. This is particularly significant given the dwindling reserves of
traditional fossil fuels and the associated environmental concerns. Green
hydrogen is poised to play a pivotal role in the global energy transition,
helping to secure humanity's future and mitigate the adverse impacts of climate
change.
She emphasized that Egypt's
energy sector presents numerous opportunities for green hydrogen development,
given the country's abundant resources for producing renewable energy at highly
competitive costs. This growing sector is also supported by a strong political
commitment to green energy, evident in ongoing collaborations with European
development partners like the European Bank for Reconstruction and Development
and the European Investment Bank on various green projects. One such initiative
is the development of Egypt's first green hydrogen production facility within
the Suez Canal Economic Zone, focused on producing green ammonia.
She also noted that international
partnerships have led to other significant green hydrogen projects, including
the 'Development of the First Green Hydrogen Production Facility within the
Suez Canal Economic Zone,' a collaborative effort involving Scatec, Fertiglobe,
Orascom, and the Egypt Sovereign Fund.
Al-Mashat further highlighted strategic partnerships with international partners, including the German government and the European Union, in the field of renewable hydrogen. These collaborations offer significant opportunities for Egypt to export hydrogen, as evidenced by the declaration of intent signed between the Egyptian and German governments in 2022
