Through the Emirati company Masdar, the aim is to install production centres for this resource in the North African country with a capacity to generate 4 GW by 2030

Emirates reaches an agreement with Egypt to produce green hydrogen

PHOTO/WAM - Masdar, one of the world's leading renewable energy companies, and Hassan Allam Utilities, have announced the signing of two Memoranda of Understanding with leading Egyptian state-owned organisations

The United Arab Emirates has just signed a historic agreement with Egypt in the field of renewable energies. The two nations intend to enter into the production of green hydrogen, one of the cleanest and safest resources for the planet and which aims to offer several alternatives to improve the environmental situation.  

Two memoranda of understanding have been initialled to make this new project viable. Masdar, one of the most renowned brands in this field and of Emirati origin, together with Hassan Allam Utilities have agreed to implement this idea. A number of Egyptian organisations specialising in the sector will be involved. The aim is to install several green hydrogen plants in Egypt. These will mainly be located on the Mediterranean coast and others in the economic zone near the Suez Canal. It should be noted that the signing of the document is supported by the Egyptian government, which has shown its full backing for the implementation of this idea. 

First, the first phase of the project will be installed. According to the companies, it will be operational from 2026 and will produce around 100,000 tonnes of e-methanol. In addition, the electrolysis plants will produce 2.3 million tonnes of green ammonia, which will go directly to export and to power Egyptian industries. 

"The partnership agreements reached today to explore the development of green hydrogen production demonstrate the strength of the close relationship between the UAE and the Arab Republic of Egypt," said UAE Minister of Industry and Advanced Technology Dr Sultan bin Ahmed al-Jaber. He presided over the signing as Masdar's special envoy. 

"These projects will build on the UAE's and Masdar's position as pioneers in the global hydrogen market and expand our ability to deliver zero-emission energy solutions," continued Al-Jaber. "As our two countries prepare to host the next two COPs, we look forward to working with our Egyptian partners to make practical progress on the energy transition that will deliver significant economic and climate benefits," he concluded after the signing. 

Green hydrogen is one of the ecological resources that has been booming in recent years. It is produced through electrolysis, a method that decomposes water into dioxygen and hydrogen gas, but energy must first be obtained, either from wind or solar power. It is one of the products that promise to decarbonise industry and thus reduce emissions of gases that seriously contribute to the deterioration of the greenhouse effect.  

With this project, Egypt reaffirms its vision in the fight against climate change under the government's national plans. With these two new memoranda, the nation can expand the development of renewable energy projects on its territory. In addition, it is preparing to include green hydrogen in the energy mix for the near future. Within Egypt Vision 2030, the aim is to achieve an energy mix of up to 42% using renewable energies by 2030. 

Egypt has been chosen by the Emirates as the ideal location for the creation of green hydrogen due to the resources it provides. The country of the pyramids is rich in hours of sunshine and wind, so the implementation of energy projects is one of the most booming issues in the area. Moreover, the cost of producing them in this country is very cheap and it competes well in the world energy market.  

The country is also emerging as one of the main direct competitors in the production of green hydrogen. This is a great opportunity to improve the export of products and thus attract international companies to invest in such projects in the area. 

"We can help the green hydrogen market reach its full potential in the coming years and play its part in supporting the global energy transition," said Mohamed Jameel al-Ramahi, CEO of Masdar.