News Analysis: Egypt at full steam toward becoming regional green energy center

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CAIRO, Aug. 9 (Xinhua) -- The Egyptian government is implementing a clear strategy to transform the country into a regional center for the production and export of green energy, said Egyptian officials and experts.

Egypt recently inked a series of deals with energy firms based in India, Norway, Germany and the United Arab Emirates to set up green hydrogen and green ammonia production facilities in the Suez Canal Economic Zone, with the foreign partners pledging to invest over 40 billion U.S. dollars in total by 2030.


Egypt has strived "to localize the manufacture of electrolysis used in green hydrogen given the expected growing demand for green fuel from international shipping lines in the near future," Ayman Hamza, a spokesman for the Ministry of Electricity and Renewable Energy, told Xinhua.

The strategic location of the economic zone can help Egypt to become a "leading region in the world in this emerging industry, as well as transforming it into a global logistic center for green bunkering ships," said Presidential Spokesperson Bassam Rady in a statement in May.

The hydrogen generated by renewable or low-carbon power such as solar and wind is called green hydrogen, which helps decarbonize shipping and transport sectors in the future, where it can be used as a fuel.

Chemical industries can produce ammonia using the water electrolysis technique, so a key ingredient in agricultural fertilizer will become greener.

Such cooperation in green hydrogen and green ammonia is part of Egypt's efforts to realize the goal of expanding the renewables in the national energy mix to 42 percent by 2035, along with earmarking 30 percent of government investments to the green field in the current fiscal year, and hosting the United Nations Climate Change Conference (COP27) in November.


"Egypt has developed a strategy to expand green and renewable energy from the sun and wind, and there is great interest from global companies to invest in green energy in Egypt," Hamza said, adding that the proximity to Europe gives Egypt an advantage in supplying one of the fastest growing markets for renewable energy.

Hamza said Egypt's renewable energy production will exceed 10,000 megawatts in 2023, backed by "distinguished projects" such as the Benban Solar Park.

Located in the desert of upper Egypt's province of Aswan, the huge photovoltaic power complex now produces a total capacity of about 1,465 megawatts and can be expanded to a full capacity of 2,000 megawatts.

Ahmed Hegazy, head of the Egypt Green Energy Association, told Xinhua that Egypt is well positioned to be a nexus for the neighboring countries in Africa, Asia and Europe in terms of the power grid and transmission lines.

Foreign investors who coveted the wind energy potential in Egypt have formed joint ventures in building two wind farm projects in the Gabal El Zeit and Zafarana regions along the west coast of the Gulf of Suez, Hegazy added.


Egypt, along with its Russian partners, has also pushed forward the plan to build its first nuclear power plant, the El-Dabaa plant.

Located in the Mediterranean province of Matrouh, the plan was designed to have a total capacity of 4,800 megawatts. Egypt announced in July that the construction of the first reactor had begun.

Realizing the profound challenge posed by climate change, Egypt has also deepened cooperation with emerging heavyweight countries in renewable tech and manufacturing such as China, said Egypt's Minister of Environment Yasmine Fouad.

"This includes solar panels, and other cooling and heating facilities with low emission features," she told Xinhua, adding that there are great potentials for Egyptian government entities to cooperate with Chinese partners in getting more energy efficient and environmentally friendly. Enditem

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