Egypt's Green Hydrogen Initiative Faces Investment and Regulatory Challenges
Egypt's green hydrogen projects, with 32 MoUs valued at USD 175 billion, have stalled, with under five exceeding feasibility studies. A new program by SCZone and Unido aims to enhance investment readiness, addressing regulatory gaps and supporting project development.
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Egypt's National Clean Hydrogen Program, launched in April 2023, seeks to advance green hydrogen projects stalled in planning, with Unido providing essential technical and policy support. The initiative is crucial as only a fraction of the 32 signed MoUs for green hydrogen, valued at USD 175 billion, have progressed beyond feasibility studies.
Effective regulatory frameworks and coordination among various stakeholders are required for project financing, as developers struggle with offtake agreements essential for securing project funding. Multilateral development banks could assist by providing grants and blended finance to reduce risks. Egypt's domestic consumption of green hydrogen could offer a viable path forward, potentially allowing for the export of low-carbon products while addressing local industrial needs.
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