Masdar in the UAE and Egyptian company Hassan Allam Utilities have signed agreements with state-sponsored Egyptian organizations to jointly develop large-scale green hydrogen projects aimed, in particular, at exporting to Europe
Projects in Egypt, on the Mediterranean coast and the economic zone of the Suez Canal, are aimed at creating an electrolyzer with a capacity of 4 gigawatts by 2030 with a production of up to 480,000 tons of green hydrogen per year, according to CNBC.
The project will focus on the bunkering market, exports to Europe and stimulate local industry.
In a statement, Masdar said that Egypt has rich solar and wind resources, which allow it to generate renewable energy sources at a highly competitive price, which is a key factor in the production of green hydrogen. The country is also located in close proximity to markets where demand for "green hydrogen" is expected to increase the most. It also provides opportunities for exports.
The hydrogen sector can also develop during the decarbonization of large economies, as H2 is easy to store and transport, including through existing pipelines.
The European Commission plans to install 40 GW of renewable hydrogen in the EU by 2030. The plan also calls for an additional 40 GW in the neighborhood of Europe for export to the EU.
In the last few years, many companies have decided on hydrogen.
"If we want to go to zero, we can't do it with renewable energy alone. We need something that acts as a natural gas today, especially seasonality and discontinuity, and that's hydrogen," said Michelle Della Vinha, head of the department. Goldman Sachs' shareholding in the EMEA region.
The main thing, according to him, is to produce hydrogen without CO2 emissions, ie "green" and "blue" hydrogen, which is produced using natural gas and, consequently, with CO2 emissions.
"Whether we do it by electrolysis or we do it by carbon capture, we need to generate hydrogen in a clean way. And when we get it, I think we have a solution that can one day be at least 15% of the world's energy markets, which means that it will be a market of more than a trillion dollars a year, "he added.
It will be recalled that DNV noted that the development of RES and green hydrogen in Europe will be accelerated in response to Russia's war.