Egypt’s General Authority for Investment and Freezones (GAFI) is pitching a USD 17 bn mega green hydrogen plant in South Sinai for investors, according to its Invest in Egypt portal website that provides a rundown of investment opportunities in the country. The facility — dubbed by GAFI as possibly the world’s largest green hydrogen — would produce up to 400k tons of green hydrogen annually, using 3.1 GW of solar photovoltaic energy during the day and hydroelectric storage at night to achieve 24/7 production. The project was first picked by Al Arabiya, but it is not clear when it was published on the Invest in Egypt portal.

The goal: The intention is to export the production to Europe via sea tankers, with the first phase targeted for completion in 2030 and additional phases rolling out in 2033 and 2035. The plant would be developed in partnership with the Military Production Ministry.

Egypt has big green hydrogen ambitions: The country is looking to produce 1.5 mn tonnes of hydrogen each year by 2030. Back in January 2024, Egypt passed a law including a package of incentives aimed at stimulating the country’s green hydrogen industry. Under the legislation, companies implementing green hydrogen projects will receive VAT and income tax breaks, alongside many other incentives.

IN OTHER GREEN HYDROGEN NEWS-

Oman’s first green hydrogen FID expected in 2026-2027: One of the eight consortiums developing green hydrogen projects in Oman is expected to reach a final investment decision (FID) in 2026 or 2027, Oman Observer reported last week, citing Omani Energy and Minerals Minister Salim bin Nasser al Aufi. The consortiums — which have been awarded land blocks across central and southern Oman over the past two years — aim to produce 1 mn tonnes of green hydrogen annually by 2030.

What could be holding back FDIs? Investors need assurances on the risks associated with investing in a new tech and product like green hydrogen, and are partial toward private-public partnerships and active government policy that could distribute and mitigate risks, the Oman Observer reported last week, citing comments by Engie exec Hyerin Park at the Oman Climate Week. Government-backed loans and subsidies should play a role in financing, Park reportedly said.

Financial viability is also another issue that keeps possible developers awake at night, given the fact that current electrolyzer tech has limited capacity of 100-200 MW and is highly expensive, Park added. Improving the capacity of electrolyzers while lowering their costs would be key for investors.

REMEMBER- Engie is a member of a consortium that was picked by Oman’s state-owned hydrogen company Hydrom back in 2023 to develop a USD 6.7 bn green hydrogen plant in Duqm Port. The project — dubbed HyDuqm — is planned to produce some 200k tons of green hydrogen by 2030 utilizing about 5 GW of dedicated wind and solar capacity.

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