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.
- 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.