OverUSD 40 bn could be poured into green hydrogen projects: Egypt has inkedseven MoUs with international and local companies to develop green hydrogen and renewable energy projects worth USD 41 bn in the Suez Canal Economic Zone over the next ten years, according to a statement from the cabinet.

Per the agreement, some USD 12 bn will be deployed during the pilot phase, while USD 29 bn willbe invested in the first phase of development.

Who’s involved? The MoUs were signed with London-based PASH Global, Switzerland’s Smart Energy, South Korea’s SK ecoplant, Canada-based AmmPower, China’s United Energy Group, and Egypt’s Gila Al Tawakol Electric and Gama Construction. The statement did not disclose how much each agreement was worth or detail the project proposed.

This bodes very well for the country’s green hydrogen ambitions: Renewable energy andespecially green hydrogen targets have been central to the economic strategy for President Abdel Fattah El Sisi’s third term, which outlines plans to turn Egypt into a regional hub for green hydrogen production by 2026 and a global hub by 2030. The country aims to produce 3.2 mn tons of green hydrogen per year by 2029 and 9.2 mn tons per year by 2040.

What is being done to draw in investment? Companies that implement green hydrogen projects within five years will receive tax breaks of 33-50% on income and pay no VAT on raw materials, plant and machinery bought for the plants, according to the law ratified by President Abdel Fattah El Sisi last month. Details for the long-awaited national green hydrogen strategy look close to being finalized, after the Supreme Council of Energy approved a national strategy on Tuesday.

Remember: Egypt inked framework agreements worth a combined USD 83 bn during 2022’sCOP27 in Sharm El Sheikh with international companies to construct nine green hydrogen and ammonia facilities in the SCZone. The facilities would collectively produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year when fully operational.

The story also got the attention of the int’l press:Reuters.

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