{"id":612223,"date":"2023-12-19T00:00:00","date_gmt":"2023-12-19T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/egypts-green-economy-in-2023-a-run-down-of-initiatives-investments-and-commitments-one-year-on-from-cop27\/"},"modified":"2023-12-19T00:00:00","modified_gmt":"2023-12-19T00:00:00","slug":"egypts-green-economy-in-2023-a-run-down-of-initiatives-investments-and-commitments-one-year-on-from-cop27","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/egypts-green-economy-in-2023-a-run-down-of-initiatives-investments-and-commitments-one-year-on-from-cop27\/","title":{"rendered":"Egypt\u2019s Green Economy in 2023: A run-down of initiatives, investments, and commitments one year on from COP27"},"content":{"rendered":"

Gas shortages and rolling blackouts have highlighted the importance of a green<\/strong> transition:<\/strong> This year has emphasized the need for an expansive and reliable renewable energy network after intense heat waves, a dip in domestic gas production, and a slashing<\/a> of imported Israeli gas left Egypt dealing with rolling blackouts throughout the summer months. On top of concerns over energy security, many international organizations including the International Energy Agency have warned<\/a> that \u201cEgypt is projected to face a notable increase in multiple climate hazards by the end of this century\u201d and even some in the decades and years to come. <\/p>\n

We\u2019ve got ambitious targets, and a lot of work to get there: <\/strong>The Madbouly government wants renewables to contribute to 42% of power produced by 2030<\/a> and 60% by 2040<\/a> \u2014 and is building huge amounts of renewable infrastructure to get there. The International Cooperation Ministry also wants to reduce<\/a> its CO2 emissions by 17 mn tons a year through the closure and decommissioning of 5 GW of gas-fired power plants<\/a> by 2025, saving the country USD 1.2 bn a year spent on providing the plants with fuel for operations.<\/p>\n

The public and private sector and international partners have been busy trying to make<\/strong> our green transition a reality:<\/strong> One year after Egypt hosted COP27, the country has made some progress on realizing several green initiatives and the public and private sector have inked contracts for many more in the future, so we thought we\u2019d put together a brief rundown of some of the major green initiatives, contracts, and commitments we reported on in the last year.<\/strong><\/p>\n

We\u2019ve seen a lot of green financing coming from abroad:<\/strong> Bilateral and multilateral lenders committed a total of USD 7.2 bn<\/a> to the government\u2019s Nexus for Water, Food and Energy (NWFE) program in the past year, International Cooperation Minister Rania Al Mashat said<\/a> in November. The year has also seen<\/a> international development banks regularly grant<\/a> loans specifically for green projects<\/a> in Egypt. We\u2019ve also reached<\/a> debt swap agreements with other countries on the proviso that we use the money to extend our renewables infrastructure.<\/p>\n

Two more proposals for European green energy link-ups arrived this year: <\/strong>Norwegian renewable energy developer Scatec proposed a 3 GW link between Egypt and Italy in February<\/a> after a USD 3.5 bn, 3 GW Egypt-Italy interconnector<\/a> was proposed in January, bringing the number of current proposals<\/a> to five.<\/p>\n

State-owned companies can\u2019t get enough of green fuel<\/strong>:<\/strong> A group of state-owned companies are looking to set up<\/a> a second USD 1.2 bn plant for producing green fuel in the Suez Canal Economic Zone (SCZone), according to unconfirmed reports in December. The consortium, which includes Helwan Fertilizers, Abu Qir Fertilizers, and the National Bank of Egypt\u2019s investment arm Al Ahly Capital Holding, are already working on a USD 2.6 bn green methanol plant<\/a> in Ain Sokhna and reportedly now have their eyes on a green ammonia project.<\/p>\n

Maersk also wants in:<\/strong> Egypt signed<\/a> a framework agreement in October with Maersk\u2019s new green methanol company C2X<\/a> to produce the green fuel in the Suez Canal Economic Zone. The first phase of the project will require USD 3 bn of investment and will produce 300k tons of green methanol per year. The company expects to increase capacity to 1 mn tons a year by the final phase of the project. Not to be outdone, Scatec also inked<\/a> an USD 1.1 bn agreement with the SCZone to provide ships passing through the Suez Canal with green fuel.<\/p>\n

Solar and wind projects have also been rolling in: <\/strong>Scatec inked<\/a> an agreement with the Egyptian Electricity Holding Company (EEHC) to build a 1-GW solar and 200-MWh battery storage project in Egypt \u2014 the country\u2019s first \u2014 in December. We also found out<\/a> in November that ACWA Power and Hassan Allam expect to break ground on a USD 1.5 bn, 1.1 GW wind farm in the Gulf of Suez \u2014 the largest of its kind in the Middle East \u2014 early next year. <\/p>\n

We could be seeing Egypt\u2019s first locally produced EV soon:<\/strong> The electric vehicle industry in Egypt could finally be starting to gain some much-needed momentum, as our first locally manufactured EVs \u2014 a low-range, low-speed commuter for urban areas \u2014 could roll off production lines soon. With the government working on providing incentives to localize the industry as part of its automotive strategy<\/a>, multiple local companies have announced plans<\/a> to start locally producing EVs in the foreseeable future.<\/p>\n

Chemical recycling could soon be hitting our shores: <\/strong>US-based multinational Honeywell last year signed an MoU<\/a> with Egypt\u2019s Environ Adapt \u2014 the waste treatment arm of Intro Sustainable Resources Holding \u2014 to potentially set up a first-of-its-kind chemical recycling facility. Environ is still expected to run a feasibility study to examine market trends, feedstock availability, the specs for the proposed plant, project schedule, and financial modeling before moving forward.<\/p>\n

Green food centers planned to cut down on food waste:<\/strong> Egypt plans to set up 17 green food centers in concert with the private sector, with the first phases of the project set to kick off in 2024 and be completed within two years, the Supply Ministry said in October<\/a>. The centers will be logistics hubs for the wholesale of fruit and vegetables providing refrigeration, packing, and sorting facilities and are designed to serve both exports and the local market. The waste will be minimized by creating a more contained and sustainable supply chain.** Missed our coverage of COP28?<\/strong> Last week, we did a round-up of all the climate change commitments, investments, and agreements signed during COP28 that you can check out here<\/a>.<\/p>\n

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Your top green economy stories for the week:<\/strong><\/p>\n