EU, Egypt boost energy partnership with green hydrogen pact
Hydrogen tanks. Source: US Office of Energy Efficiency & Renewable Energy
November 16 (Renewables Now) - The EU and Egypt have entered into a strategic partnership to develop the production, consumption and trade of renewable hydrogen and its derivatives.
A bilateral memorandum of understanding (MoU) was signed at the COP27 summit on Wednesday by the European Commission's (EC) Executive Vice-President Frans Timmermans, Energy Commissioner Kadri Simson, Egypt's Minister for Petroleum Tarek El Molla and the Minister for Electricity and Renewable Energy Mohammed Shaker El-Markabi.
The cooperation will help the EU cover part of its green hydrogen consumption projected at 20 million tonnes in 2030 through imports from Egypt. It will also facilitate investments in renewables in Egypt, thus driving the energy transition in the country.
The two sides will also promote investments in the expansion of electricity grids and the construction of infrastructure for the storage, transport and export to Europe of green hydrogen and its derivatives.
The pact is also expected to play a key role in building an EU-Mediterranean Renewable Hydrogen Partnership, the EC said on Wednesday.
An EU-Egypt hydrogen coordination group and a business forum, involving industry representatives, regulators, financial institutions and experts will be set up to support the implementation of the memorandum.
In addition to the green hydrogen partnership, the EC signed an agreement with the European Bank for Reconstruction and Development (EBRD) and Egypt's minister of international cooperation Rania El Mashat to provide up to EUR 35 million (USD 36.41m) to Egypt's Energy Wealth Initiative.
The initiative is aimed at promoting investments for the deployment of 10 GW of green generation capacity in the North African country. Among its goals is also the retirement of 5 GW of existing and inefficient gas-fired power plants which corresponds to 5% of Egypt's power supply.
Commenting on the pact, Timmermans said: "This first-of-its-kind agreement on renewable hydrogen with Egypt shows that the EU is leading the work on establishing a framework for a global hydrogen economy. Together with reliable energy partners, like Egypt, we will establish a secure and competitive renewable hydrogen supply chain."
Anna is a DACH expert when it comes to covering business news and spotting trends. She has also built a deep understanding of Middle Eastern markets and has helped expand Renewables Now's reach into this hot region.