{"id":77996,"date":"2023-06-14T01:00:49","date_gmt":"2023-06-14T01:00:49","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2023\/06\/14\/egypt-releases-a-roadmap-to-overcoming-green-hydrogen-production-obstacles\/"},"modified":"2023-06-14T01:00:49","modified_gmt":"2023-06-14T01:00:49","slug":"egypt-releases-a-roadmap-to-overcoming-green-hydrogen-production-obstacles","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2023\/06\/14\/egypt-releases-a-roadmap-to-overcoming-green-hydrogen-production-obstacles\/","title":{"rendered":"Egypt releases a roadmap to overcoming green hydrogen production obstacles"},"content":{"rendered":"

<\/a> Egypt publishes a green hydrogen production roadmap: <\/strong>The Egyptian government published its roadmap (<\/a>pdf<\/a>)<\/a> for green hydrogen production yesterday, noting the challenges hindering production for local players and offering potential pathways for accelerating green fuel generation in the country. The report comes ahead of the government\u2019s national strategy<\/a> on green hydrogen production, which the state says should be revealed in the coming months. The report cites high production costs, a lack of demand for green fuels, inadequate infrastructure supporting green fuel generation, and a lack of localization on green hydrogen-associated technologies as obstacles that need to be overcome before the country can unlock its full green hydrogen production potential.<\/p>\n

REMEMBER- The Egyptian government signed several framework agreements during <\/strong>COP27<\/strong> with foreign companies to construct a number of green hydrogen and ammonia facilities in the Suez Canal Economic Zone (SCZone). The facilities would cost a combined USD 83 bn<\/a> and collectively produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year. Egypt also approved incentives earlier in May<\/a> to boost the country\u2019s green hydrogen sector and lure in much-needed foreign exchange inflows.<\/p>\n

Here are some of the recommendations:<\/strong> The Electricity and Renewable Energy Ministry and the General Authority for Investments and Free Zones (GAFI) would be tasked with increasing support and financing for the production of electricity from renewables \u201cas soon as possible,\u201d the report notes. Subsidies for electricity used for green hydrogen production \u2014 especially for electrolyzers \u2014 are also needed, with the Finance Ministry and the Electricity and Renewable Energy Ministry enacting regulations on this front. The government should also focus on localizing electrolyzer tech and provide grants and concessional loans to push down electrolyzer-associated manufacturing costs, the report notes, adding that the Foreign and the International Cooperation Ministries would work in the short term to establish a \u201cone-stop shop\u201d platform to secure funds and loans from countries to which Egypt would export green fuels.<\/p>\n

REFRESHER- Egypt is getting an electrolyzer plant courtesy of the EBRD: <\/strong>The European Bank for Reconstruction and Development agreed to provide the Fertiglobe-Scatec-OC-SFE ammonia plant with a USD 80 mn loan<\/a> in November to build a 100 MW electrolyzer facility powered by renewable energy.<\/p>\n

And there\u2019s more on deck: <\/strong>The government \u2014 through GAFI and the Electricity and Renewable Energy Ministry \u2014 should look at providing renewables developers with tax exemptions and financial incentives to increase green hydrogen production, the report advises. The country\u2019s Finance Ministry and the Trade and Industry Ministry should also in the short term apply carbon contracts for difference<\/a> \u2014 which aim to reduce financial costs and risks of clean energy investments \u2014 to establish a standard for carbon pricing, and ultimately bring down hydrogen costs for green fuel consumers. Meanwhile, Egypt\u2019s Environment Ministry should pass regulations requiring that manufacturers clearly label products that use green hydrogen in their production to incentivize hydrogen utilization.<\/p>\n

And s<\/strong>upply<\/strong>, decarbonization, and infrastructure targets are included:<\/strong> The government \u2014 represented by the Trade and Industry Ministry, GAFI, and the SCZone \u2014 should promote the use of green hydrogen locally by establishing \u201chydrogen valleys\u201d where production sites are located in close proximity to ports and other areas where consumption is high, which should increase local demand, according to the report. The government should also set clear goals for green fuel consumption targets to support local production, enact a carbon tax to accelerate the transition to green fuels, and incentivize green fuel usage in hard-to-abate sectors including the fertilizer production and steel manufacturing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Egypt publishes a green hydrogen production roadmap: The Egyptian government published its roadmap (pdf) for green hydrogen production yesterday, noting the challenges hindering production for local players and offering potential pathways for accelerating green fuel generation in the country. The report comes ahead of the government\u2019s national strategy on green hydrogen production, which the state […]<\/p>\n","protected":false},"author":1,"featured_media":77997,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[269],"tags":[40,11,39,88],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-77996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-green-hydrogen","tag-egypt","tag-enterpriseclimate","tag-green-hydrogen","tag-renewables","wpautop","entry"],"acf":{"mongo_id":"bb4d77fb-f8de-439a-8a88-b9061d3684d2","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/5\/1935.jpg","photo_position":"above","related_issue":[77989],"teaser":"","voice_url":""},"yoast_head":"\nEgypt releases a roadmap to overcoming green hydrogen production obstacles - Climate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/climate\/2023\/06\/14\/egypt-releases-a-roadmap-to-overcoming-green-hydrogen-production-obstacles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt releases a roadmap to overcoming green hydrogen production obstacles\" \/>\n<meta property=\"og:description\" content=\"Egypt publishes a green hydrogen production roadmap: The Egyptian government published its roadmap (pdf) for green hydrogen production yesterday, noting the challenges hindering production for local players and offering potential pathways for accelerating green fuel generation in the country. 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