Egypt’s abundance of sun and wind “generates renewable energy at a very competitive price – a key alarm for green hydrogen production”.
Ute Grabowsky | Photothek | Getty Images
The United Arab Emirates (UAE) and Egypt’s Hassan Alam Utility have signed an agreement with government-sponsored Egyptian companies to work together on the development of large green hydrogen projects.
Announcing Sunday’s announcement – owned by the Abu Dhabi Provincial Fund Mubadala – outlines two agreements related to facilities for the Mediterranean coast and the Suez Canal Economic Zone.
Egypt’s projects plan to produce 4 gigabytes of electrolyzer capacity by 20 to 480,000 tons of green hydrogen by 2030.
Hydrogen, described by the International Energy Agency as a “multi-energy transport”, has a wide range of applications and can be used in industries and transportation.
It can be produced in many ways. One method involves the use of electrolysis, which converts water into oxygen and hydrogen by electric current.
If the electricity used in this process comes from renewable sources such as wind or sun, some call it green or renewable hydrogen.
While there is interest in hydrogen in some areas, much of the generation is now dependent on fossil fuels.
“Masdar and Hassan Alam utilities see Egypt as a center for green hydrogen production, a target for sales, export to Europe and growth of domestic industries,” Masadar said in a statement.
“Egypt is highly competitive in terms of solar and wind resources for renewable energy – a key contributor to green hydrogen production,” he added. “Egypt is also nearing the market where green hydrogen demand is expected to grow significantly, which will provide a strong opportunity for export.”
What Masdar has to say about Europe is instructive and shows how the hydrogen sector can grow as major economies try to deplete carbon dioxide in the coming years.
A.D. In July 2021, the CEO of Italian company Snam spoke about the future of hydrogen, saying that “its beauty” could easily be stored and transported.
Speaking to CNBC’s Squawk Box Europe, Marco Alveira described how existing systems could be used to deliver renewable energy as well as biofuels.
“Gas is currently flowing from Russia, Siberia, and pipelines,” he said.
“Tomorrow we will have hydrogen produced in the North Sea, North Africa and the North Sea,” Alvera said. “And hydrogen can travel through the existing pipeline.”
The European Commission, for its part, plans to install 40 GW renewable hydrogen electrolyzer capacity in the EU by 2030.
Along with this goal, the Commission’s plan calls for an additional 40 GW to be “exported to the European Union” in the European Union.
Over the past few years, many companies have been evaluated on the topic of hydrogen.
In a recent interview with CNBC, Michel della Vigna, Goldman Sachs Equity Trading Manager for the EMEA region, wanted to highlight the important role he felt he was going forward.
“If we want to go to Net-Zero, we can’t just do it with renewable energy,” he said.
Delavian argues that hydrogen is a “very powerful molecule” and that “we need something that plays a role in the natural gas of today, especially to control seasonality and fragmentation, which is hydrogen.”
The main thing is to “produce without CO2 emissions. And that’s why we talk about green, blue hydrogen.”
Blue hydrogen refers to the hydrogen produced by natural gas – fossil – along with the CO2 emissions that are generated and stored during the process. The role of blue hydrogen in carbon dioxide society has been debated.
“Whether we do it by electrolysis or by carbon footprint, we have to produce hydrogen in a clean way,” Delavin said. “And once we get it, I think we have a solution for at least 15% of the global energy markets one day, which means more than a trillion dollars a year.”