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Egypt Enters Into The Green Hydrogen And Ammonia Sector Under A Public-Private Partnership

Egypt Began Green Ammonia Extraction In Collaboration With The Private Sector


Dr Mohamed Shaker, the Egyptian Minister of Electricity and Renewable Energy verified that Egypt had begun the extraction of green ammonia in association with the private sector; however, with restricted abilities, emphasising the fact that all deals signed in 2022 will emerge during 2023.

Shaker briefed about the nine framework contracts that were inscribed to execute the production projects of green hydrogen as well as its derivatives by employing renewable sources of energy from wind and solar energy, including capacities of around 47,000 megawatts and 24,000 megawatts of electrolysis capabilities. He added further that the complete investments turned out to be around USD 85 billion, whereas the immediate job prospects amounted to 45,000 and indirect job options amounted to 230,000.

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The minister said that the future income of Egypt would be coming from renewable energy, the same as oil.

He also stated that the following projects would help lower the emissions of carbon dioxide by 37 million tons per year and considers the expansion of renewable energy projects in Egypt in need of localisation and that he is in full support of 100 percent Egyptian product that serves international standards.

According to the minister, the ministry greatly focuses on green hydrogen extraction projects by depending on renewable energy obtained from the wind and sun to examine water for generating green hydrogen gas. He also emphasised that it is deemed one of the most inexpensive and environmentally friendly electricity production sources and is also regarded as the future fuel in the upcoming decade or so; hence the Ministry of Electricity positions the enforcing of green hydrogen projects as the utmost prioritised.

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The Minister of Electricity, Engineer Mohamed Shaker, established that the green hydrogen production in Egypt would be carried out via foreign investment, describing that all of the field's investments arrive from overseas.

The minister stated that a plan was developed by the ministry in 2014 so that the electricity subsidies in Egypt would get lifted entirely; however, the shift in the rate of exchange impacted the cost of the tariff on electricity, and thus if the exact price of electricity were kept in the upcoming next two years, there would be a major rise in the electricity sector's targeted subsidies.

He further stated that since the beginning of 2019, they had planned a schedule upto the year 2057 with regard to their obligations. They have notified the Central Bank Governor regarding this matter. He also pointed towards the fact that the government is working from all angles to deliver the requirements of people in Egypt for electrical energy.

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Hence, as stated in the article by Procurement Resource, Egypt has started to extract green ammonia alongside the private sector, as verified by the Egyptian Minister of Electricity and Renewable Energy. It can be noted that the deals made last year will come to light in 2023, and the nine framework contracts will be set in motion to execute the production projects of green hydrogen as well as its derivatives by employing renewable sources of energy from wind and solar energy.

This move is being seen as a step for future income, which will be similar to oil. The shift will also promote a more sustainable environment will lesser carbon dioxide emissions.

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