Egypt
The country's potential
Egypt extensively uses grey hydrogen, produced from natural gas using steam methane reforming (SMR), in its key industries. Gas used for hydrogen production is about 13% of Egypt's domestic gas consumption (about 14.9 million tons of CO2/year). CO2 emissions (6% of Egypt's present total CO2 emissions) are not abated during the process. The potential introduction of green hydrogen can help the country to decarbonize its industry and contribute to fulfilling climate targets.
In November 2022, at COP27, the Egyptian Government announced the national low-carbon hydrogen strategic framework. Egypt strives to play a leading role in supplying hydrogen and derivatives. Egypt will be competitive to become a hub for low-carbon hydrogen with an export capacity of 12.5 Mt of green hydrogen by 2035 and targeting up to 8% (10 MTPA) of the tradable market by 2040.
Egypt is currently undertaking several actions towards developing low-carbon hydrogen initiatives and projects. At this moment, there are around 19 signed memoranda of understanding. Eighteen (18) projects will be in SCZone, and one (1) will be in East Port-Said on the Mediterranean Sea.
UNIDO's Programme for Hydrogen in Industry supports the country with technical assessments at the pre-feasibility level to identify viable opportunities in the Egyptian ammonia sector for green hydrogen application. Italian Government collaborates with UNIDO on this matter.
Our partners in the country
National: Federation of Egyptian Industries, Environmental Compliance Office, ENI Egypt, Siemens, Egypt, General Authority for the Suez Canal Economic Zone (SCZone), the Egypt Sovereign Fund, EBRD, Spanish Embassy, Orascom, Ministry of Electricity, Ministry of Foreign Affairs.
International: Politecnico de Milano and Fondazione de Milano, ENI.
Aim and focus of our intervention
UNIDO supports the country with technical assessments at pre-feasibility level to identify viable opportunities in the Egyptian ammonia sector for green hydrogen application. The project aims to assess the potential for a low-carbon hydrogen market in Egypt, strengthen the country's readiness for market development and promote its usage for industry decarbonization.
The project supports public and private institutions in Egypt with knowledge of low carbon hydrogen production potential, current and future demand scenarios, development of business models and creation of value chains.
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