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Egypt’s green hydrogen plans are over-ambitious

Tuesday, December 6, 2022

Significance

Plentiful sun, wind and unused land, and a location close to prospective European importers afford the country huge competitive advantages. Obstacles include weak project bankability while the industry remains in its infancy, and the lack of a regulatory framework and sector development strategy.

Impacts

  • Producing hydrogen for carbon-free fertilisers and shipping fuel will be developers’ initial focus, building on Egypt’s existing strengths.
  • The need to use desalination will limit production to coastal sites, with the area around the Suez Canal becoming the main cluster.
  • Bureaucratic inefficiency is likely to delay the development of a regulatory framework and implementation strategy.

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