- Sovereign funds and other government entities in the Gulf states and Egypt have partnered with international energy firms, investing billions of dollars to develop green hydrogen plants.
- The Abu Dhabi firm has signed an agreement with Egypt to develop green hydrogen plants with a combined capacity of 4,000 MW and has agreed to invest in a green hydrogen plant in England.
Sovereign funds and other government entities in the Gulf states and Egypt have partnered with international energy firms, investing billions of dollars to develop green hydrogen plants. Hydrogen, which is the lightest and most abundant element in the universe, can be burned as a fuel, producing only water as a by-product, used to store excess energy produced by renewable electricity, or converted into other substances. It is also vital in many industrial processes, such as steelmaking.
Historically, hydrogen has been manufactured from coal or gas, creating colossal carbon dioxide emissions. But its green variant, which currently represents less than 1% of global production, uses electrolysers powered by renewable electricity to split water into its constituent elements – oxygen and hydrogen – and is carbon-free. The Abu Dhabi firm has signed an agreement with Egypt to develop green hydrogen plants with a combined capacity of 4,000 MW and has agreed to invest in a green hydrogen plant in England.
Egypt in December signed an MoU with BP to help develop the country’s green hydrogen industry. It will conduct various studies to identify locations for green hydrogen plants as part of plans to make Egypt an export hub for gas. Meanwhile, the European Bank for Reconstruction and Development (EBRD) will lend Egypt $80 million to build a 100 MW electrolyser at its first green hydrogen plant that will produce 15,000 tonnes annually.
Energy China will build a green hydrogen plant in Egypt with an annual capacity of 140,000 tonnes. According to The Africa Report, Egypt has signed around a dozen deals with foreign firms to build various green hydrogen facilities. Oman is also betting big on green hydrogen, launching Hydrom in 2022. Like Abu Dhabi, the sultanate aims to produce 1 million tonnes of green hydrogen annually by 2030. Hydrom extended the deadline for bids to build its first green hydrogen plant to March 15, with the winners due to be announced in April.