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Egypt possesses the potential to become an energy hub owing to its location between three important continents (Europe – Africa – Asia), huge renewable energy potential (wind-solar), strong extra high voltage transmission network and the country operates one of vital trade routes of the world the Suez Canal (1).

Egypt is the third-largest natural gas producer in Africa, following Algeria and Nigeria. According to the Oil Gas Journal (OGJ), Egypt held proved oil reserves of 3.3 billion barrels and held 63 trillion cubic feet (Tcf) of natural gas reserves as of January 2021. Over half of Egypt’s crude oil exports went to India, and the remainder went to China and countries in Europe (2).

Egypt’s GDP has seen steady growth since 1980’s with ~USD 22 billion. There was a period of negative growth in years 2017-2019, but it bounced back again to ~USD 404 billion in 2021 (3) and reach ~USD 443 billion by 2023 (4).

Egypt has a total installed power capacity of ~60 GW, where natural gas contributes ~88 percent of the electricity production. Renewable energy for electricity generation comprises mainly of hydropower and small contribution from solar PV, represented in the graph below. Accelerate the deployment of renewable energy ~10 GW from new wind and solar capacities (5).


General Information

In Egypt, hydrogen is currently produced from natural gas using the steam methane reforming (SMR) process and is considered as grey hydrogen. Presently, all the hydrogen that is produced in Egypt is consumed domestically. The total hydrogen demand for hydrogen in Egypt was ~2 MTPA in 2019.Egypt displays huge potential in hydrogen production equating to ~4700 TWh (10). According to a study conducted by European Investment Bank (EIB) and International Solar Alliance (ISA), the country will produce ~20 MTPA of green hydrogen by 2035, making it one of the largest producers of GH in African region (11).Hydrogen demand in Egypt in 2019 (12)


Egypt is committed to reduce emissions by 33 percent in the electricity sector (70 Mt CO2e), 65 percent in the oil and gas sector (1.7 Mt CO2e), and 7 percent in the transportation sector (9 Mt CO2e) by 2030 compared to business-as-usual. The country plans to install additional renewable energy capacities that will generate 42 percent of electricity by 2035 (13). This is one of the key drivers for adoption of green hydrogen in Egypt to minimize the emissions from conventional hydrogen and penetrate installed power generation with increased RE capacities.

Egypt has recently announced a partnership with the European Bank for Reconstruction and Development (EBRD) for the development of a hydrogen strategy as part of the government’s ambitious energy transition plans. It was reported that Egypt would allocate USD 40 billion to fund the implementation of the strategy, with the aim of achieving a production capacity of 1.4GW by 2030. This could be used to meet local demand and for exports to Europe, which envisages 40GW of imports from neighboring countries (including North African countries) by 2030.

The EBRD will assist Egypt with the development of a framework for establishing a green hydrogen industry, including (16):

  • Mapping international supply and demand.
  • Analyzing existing and potential hydrogen production.
  • Advising on the development of supply chains including storage, transportation, and export opportunities; and
  • Advising on reforms required to the regulatory and fiscal regimes.


Solar PV – 77 GW (17) with high concentration zones in East and West Nile areas.

It is estimated that ~70 percent of the land area in Egypt can generate ~2 MWh/kWp or even greater energy which is in high generation zone according to NREL. The remaining ~30 percent areas have nearly 1.6-1.9 MWh/kWp which is a good potential for solar energy comparable to UAE and other middle east countries (18).

Figures (Top Bottom) - Egypt_Africa_RE_SP.pdf (irena.org),


Wind -Potential of approx. 347 GW (19) - concentrated in East and West Nile areas.

Wind energy in Egypt falls in lower bands of power density at 100 m height.  Around 90 percentf the land mass has the potential to generate 260-420 W/m2 of power which is on lower end of the spectrum as per NREL (20).


Egypt operates the Suez Canal and the Suez-Mediterranean (SUMED) Pipeline, which are important transportation infrastructure in international energy markets. The Suez Canal is a transit route for oil and liquefied natural gas (LNG) shipments traveling northbound from the Persian Gulf to Europe and to North America. Shipments traveling southbound from North Africa and from countries along the Mediterranean Sea to Asia also move through the Suez Canal. Fees collected from these two transit points are significant sources of revenue for the Egyptian government (21).


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  • AMEA Power: AMEA Power signs agreement with the government of Egypt to deploy 1,000MW green hydrogen project. Located at the coastal town of Ain Sokhna in the Suez Governorate, the green hydrogen project will have a capacity to produce 800,000 tonnes of green ammonia per year for domestic and international export (22).
  • ACME group green hydrogen hub: India’s ACME Group to establish $13 billion green hydrogen production plant with a total capacity of 2.2 million tons annually (23)
  • Globeleq, the leading independent power company in Africa, has signed a Memorandum of Understanding with the New and Renewable Energy Authority (NREA), the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt for Investment and Development (TSFE), and the Egyptian Electricity Transmission Company (EETC), to jointly develop a large-scale green hydrogen facility within the Suez Canal Economic Zone. It will be developed in 3 phases, totaling 3.6 GW of electrolysers and around 9 GW of solar PV and wind power generation (24).
  • Masdar: Hassan Allam SCZone green hydrogen project: Masdar, Hassan Allam Utilities, and Infinity Power signed agreements with the General Authority for Suez Canal Economic Zone, the New and Renewable Energy Authority, the Egyptian Electricity Transmission Company, and The Sovereign Fund of Egypt, related to the development of 4 GW capacity green hydrogen plants in Egypt (25)
  • RenewPower SCZone green hydrogen project: ReNew Power Signed Agreement with Egyptian Government to establish a Green Hydrogen plant in the Suez Canal Economic Zone. An investment of USD 8 Billion for this project with targeted annual capacity of 220,000 tons of green hydrogen (26)
  • FFI Egypt: FFI has already signed a memorandum of understanding (MoU) to conduct studies with a view to developing green hydrogen production in Egypt. The meeting discussed the potential development of a green hydrogen production project with a 9.2 GW installed capacity (27).
  • Phelan green ammonia project: PEG plans to develop a utility scale green ammonia plant in Ras Shukeir (alternatively, at Safaga) in Egypt (28). The company aims to produce 2.5 MTPA of green ammonia (29).
  • Alfanar: Alfanar Construction, Saudi Arabia announced in a statement that it has signed an MoU with the General Authority of the Suez Canal Economic Zone (SCZONE), The Sovereign Fund of Egypt, Egyptian Electricity Transmission Company (EETC), and New and Renewable Energy Authority NREA-eg, to jointly develop a Green Hydrogen facility in Sokhna, Egypt. The estimated $4 Billion project will be powered by renewable energy sources and will have an annual production capacity of 100,000 tons of green hydrogen and 500,000 tons of green ammonia (30).
  • Alcazar: UAE firm Alcazar Energy has signed on Thursday a preliminary agreement to build an industrial facility to produce green hydrogen in Egypt. The project will be built over 37,000 square meters in Ain El-Sokhna to produce up to around 230,000 tons of green hydrogen per year, with 175,000 tons per year in the first stage (31).
  • K&K group: UAE firm K&K signed on Thursday a preliminary agreement to set up a green hydrogen production project in Egypt. The plant will be built in Ain El-Sokhna to produce 230,000 tons of green hydrogen per year (32).
  • Mediterranean Energy Partners (MEP): The agreement was signed with the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA). The MoU aims to establish a Green Ammonia facility that will initially produce at 120,000 Tons/Yr capacity in SC zone near the port of Ain Sokhna by end of 2025. The project will be fed with green hydrogen which will be produced from desalinated seawater and renewable energy generated in the sites specified by the New and Renewable Energy Authority and transmitted on the national electricity network operated by the Egyptian electricity transmission company (33).
  • Actis: Global investor in sustainable infrastructure Actis has signed a memorandum of understanding (MoU) with the Egyptian government for green hydrogen development (34).
  • Orascom, Scatec & Fertiglobe: The Sovereign Fund of Egypt had signed agreement with Orascom, Scatec and Fertiglobe to jointly develop a 50-100 MW green hydrogen plant as feedstock for green ammonia production (35).

Image Source: freepik