Egypt

SHARM EL-SHEIKH, 8 November 2022 – Francesco La Camera, Director General of the International Renewable Energy Agency (IRENA), and Gerd Müller, Director General of the United Nations Industrial Development Organization (UNIDO), have signed a joint declaration on advancing sustainable energy through the fundamental role of green hydrogen.In their statement made at the UN Climate Change Conference COP27 in Sharm el-Sheikh, both organizations’ heads declared they would jointly advance the transition towards sustainable energy through green hydrogen in pursuit of access to energy, energy security and economic development.Furthermore, IRENA and UNIDO intend to leverage international cooperation as an enabling platform to facilitate investment, policies and clean technology to accelerate inclusive and sustainable industrial development in alignment with the UN Sustainable Development Goals.

Hydrogen is one of the most abundant elements on Earth, and it represents to us a unique opportunity for a clean energy transition. The past years show clearly just how close to a climate catastrophe we are living. Climate change is an existential threat to a sustainable future. Facing up to the climate challenge is an opportunity to promote prosperity and a brighter future for all.Green hydrogen (GH2) and its derivatives will play a vital role in that transition. Hydrogen is classified as “green” – a clean and renewable energy carrier – when it is produced through electrolysis powered by renewable energy.GH2 is a game changer for the hard-to-abate sectors such as steel, cement and the chemical industry, which cannot readily be electrified. It is currently the only way we have to decarbonize these sectors.GH2 is versatile as it can be used as a combustion fuel or as feedstock for industrial processes. It can also be converted back into electricity in a fuel cell. Compared to grid renewable electricity, it can be more easily stored and transported over long distances for use further from the initial renewable energy source.Because GH2 electrolysis does not need to be near geographically concentrated or hard-to-extract resources, it can be key in establishing energy security.Derivatives of GH2, , such as green ammonia and green methanol, are long-term energy carriers. They store surplus renewable electricity produced during periods of low demand. Just like GH2, its derivatives can be used as industrial energy source, be used as green feedstock, or used as green transportation fuel.Green Hydrogen is a game changer for the hard-to-abate sectors such as steel, cement and the chemical industry, which cannot readily be electrified.Green hydrogen needs green energy: the transition needs a huge increase in renewable energy generation.Green ammonia is synthetically manufactured by combining nitrogen with hydrogen using renewable energy sources. Green ammonia can be applied in sustainable fertilizer production, thereby contributing to decarbonizing the food value chain, while supporting agricultural productivity and food security.We still have our work cut out for us in making the energy transition a reality. No mature GH2market exists yet. It is however encouraging that the number of countries with national hydrogen roadmaps has tripled over the last year. This shows that many countries are readying themselves to start using GH2 and planning how best to benefit from the economic opportunities it will provide.At UNIDO, we are putting together development programmes to help developing countries achieve this goal and realize the opportunities for sustainable industrialization that follow.

This document presents a summary of project activities carried out in Egypt. The project aimed 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.The project is part of the UNIDO‘s Global Programme for Hydrogen in Industry. Through its Programme, UNIDO aims to influence and guide the development of market polices, standards, skills, financing instruments, innovation and coordination between key stakeholders that play an essential role in the development of a just and sustainable hydrogen economy. Promoting tangible projects to accelerate the local uptake of green hydrogen in industries of developing countries and transition economies is a key element of the Programme.The project in Egypt was led by UNIDO, together with two strategic partners: Italian University, Politecnico di Milano and the Environmental Compliance Office - Federation of Egyptian Industries.

Green hydrogen is a key element in any decarbonization strategy. All major and emerging economies are investing heavily in green hydrogen, as well as in international energy partnerships to secure long-term imports. This creates new opportunities for industrial development, particularly in countries that are well-endowed with renewable power sources. If these countries create the appropriate framework conditions, they can develop promising new industrial clusters by investing in renewable power projects and electrolysers first to then gradually attract energy-intensive steel or base chemicals investments, in addition to manifold downstream industries that use green steel or chemical feedstocks. Proactive strategies are therefore indispensable to fully reap these new opportunities for industrial development.