The European Bank for Reconstruction and Development (EBRD) has announced that it is assisting Egypt in the development of a national low-carbon hydrogen strategy. The North African country is looking to create a hydrogen economy and attract foreign investment in this new sector which is critical in the world’s decarbonisation efforts.
EBRD last month signed a memorandum of understanding (MoU) with Egypt’s Ministry of Electricity and Renewable Energy and Ministry of Petroleum and Mineral Resources to establish a framework for assessing the potential of low-carbon hydrogen supply chains.
“We are very proud to contribute to Egypt’s future national low-carbon hydrogen strategy, which is in line with the Bank’s commitment to mitigating climate change where it invests. The Bank has been a strong supporter of renewable energy development in Egypt, providing policy advice, technical assistance and financing. Our aim is to back the country in achieving another milestone,” said Mark Bowman, EBRD Vice President for Policy.
Hydrogen is widely believed to be one of the decarbonised fuels of the future. It can significantly contribute to the energy transition while unlocking additional benefits from renewable power generation.
Assessment of hydrogen production potential in Egypt
EBRD will assess and map the current and future expected international supply and demand of the hydrogen market, analysing existing and potential hydrogen production in Egypt and valuing the storage, conversion and transportation of hydrogen and its derivatives.
The EBRD will also help to conduct a regulatory analysis and assessment of the changes needed to support the development of hydrogen supply chains in Egypt while ensuring the safety, reliability, competitiveness and sustainability of supply.
The assessment will provide guidelines for the country’s low-carbon hydrogen strategy, promoting the sustainable development of hydrogen as a decarbonised fuel for climate change mitigation, while ensuring cost effectiveness and identifying potential areas for investment.
Egypt will host the COP27 climate conference towards the end of the year. The country says it is aligning its national development strategy with the Sustainable Development Goals (SDGs) at the core.
“Utilising low-carbon hydrogen is a key step towards mitigating climate change as the country moves to using clean and renewable energy,” said Egypt’s Minister of International Cooperation Rania Al-Mashat.
