Egypt hopes to produce world's cheapest green hydrogen in 2025

Egypt has the potential to produce green hydrogen at the lowest cost in the world, seen to be reduced from USD 2.68 (EUR 2.72) per kilogramme in 2025 to USD 1.7/kg by 2050, the Minister of Electricity and Renewable Energy Mohamed Shaker said on Monday.

Speaking at the Egyptian Economic Conference 2022 in the New Administrative Capital in Cairo, Shaker said that the low production cost and competitive advantages will help the North African country to achieve its ambitious plan and grab 8% of the global hydrogen market.

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The minister explained that the government is working on a national hydrogen strategy. The Ministry of Electricity and Renewable Energy and the Ministry of Petroleum and Mineral Resources have signed a memorandum of understanding (MoU) with the European Bank of Reconstruction and Development (EBRD) to get a grant to finance the advisory work on the development of the strategy which will be presented during the COP 27 summit to be held in Sharm El-Sheikh in November.

In his speech, Shaker emphasised the benefits of the development of the hydrogen industry which is expected to boost Egypt's gross domestic product (GDP) by between USD 10 billion and USD 18 billion in 2025 and create about 100,000 jobs while reducing the need for petroleum imports into the country.

(USD 1 = EUR 1.015)