- The European Union and Egypt form an alliance for hydrogen production.
- The collaboration will help the EU satisfy the 20 million tonnes of green hydrogen consumption in 2030 through imports from Egypt.
EU and Egypt have formed a strategic alliance to advance the production, consumption, and commerce of renewable hydrogen and its derivatives.
A bilateral memorandum of understanding was signed at the COP27 conference by the Egyptian Ministers of Petroleum Tarek El Molla and Electricity and Renewable Energy Mohammed Shaker El-Markabi and the European Commission Executive Vice-President Frans Timmermans and Energy Commissioner Kadri Simson (MoU).
The collaboration will help the EU satisfy some of its anticipated 20 million tonnes of green hydrogen consumption in 2030 through imports from Egypt. Moreover, encouraging investments in renewable energy sources will also hasten Egypt’s energy transformation. The two sides will also promote investments in the expansion of electricity grids and the construction of infrastructure for the storage, transport and export of green hydrogen and its derivatives to Europe.
A business forum including members from the industry, regulators, financial institutions, and specialists will be established to promote the execution of the pact.
Along with the green hydrogen partnership, the EC also struck a deal with the EBRD and Egypt’s minister of international cooperation, Rania El Mashat, to give Egypt’s Energy Wealth Initiative up to EUR 35 million (USD 36.41 million).
The project seeks to encourage financial support for installing 10 GW of green power capacity in the North African nation. One of its objectives is to shut down 5 GW of Egypt’s current, ineffective gas-fired power facilities, which account for 5% of the country’s electricity needs.