Egypt is progressing green hydrogen development with the introduction of incentives for hydrogen production and agreements to develop green hydrogen projects, with a view to providing 5-8% of the world’s hydrogen by 2040
Earlier this year, Egypt’s House of Representatives approved a draft bill which mandates incentives for green hydrogen production, including tax credits of 33-55% of the tax payable on revenues generated from the production of green hydrogen, exemption from VAT for equipment and materials used for green hydrogen products, and various waivers on taxes, contracts and land registration fees.
Momentum for projects
Momentum is building for hydrogen projects, with an agreement with Saudi-based ACWA Power for the development of a green hydrogen project with a production capacity of 600,000 tonnes green ammonia per year, with the prospect of expanding capacity to 2mn tonnes per year in the second phase. The agreement was signed between ACWA Power and The Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA).
While UAE-based Fertiglobe, a leading nitrogen fertilizer and ammonia producer and distributer, has signed an MoU with AD Ports Group to store and ship urea and ammonia in Egypt and the UAE.
Egypt is also reported to be looking at possible cooperation opportunities with the European Union in the field of green hydrogen.
Read more in the latest issue of Oil Review Middle East here
