During the activities of the Hamburg Sustainability Conference in Germany The Minister of Planning, Economic Development, and International Cooperation Witnesses the signing of a €30 million grant agreement for the Egypt Green Hydrogen Project between Scatec and the PTX Facility.

The new project enhances the country’s strategy to expand green hydrogen production and shift towards renewable energy sources to achieve economic development.

  Egypt’s strong relationships with international partners stimulate development financing and reduce investment costs for the private sector.
 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, witnessed the signing of a grant agreement for the Green Hydrogen Project in Egypt, in the presence of Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, and Ms. Svenja Schulze, German Federal Minister for Economic Cooperation and Development. The agreement was signed between Scatec and the PTX Facility. The project will be funded by a grant from the PTX Green Hydrogen Facility, which was launched by the German Federal Ministry for Economic Cooperation and Development with a value of €270 million for Egypt and six other partner countries. The funds aim to provide grants for industrial projects at various stages along the green hydrogen value chain.

 

The project aims to stimulate the green transition in the Suez Canal Economic Zone and lead the country towards climate neutrality in resource and energy-intensive industries, while enhancing local value creation by taking advantage of the abundant availability of wind and solar energy. Additionally, the project is expected to generate 1,330 job opportunities during its construction, operation, and maintenance phases. It is anticipated that the project will produce 70,000 tons of green ammonia annually (equivalent to 140,000 tons of CO2 emissions per year, or 3 million tons over its production life) and lay the foundation for the sustainable transformation of Egypt’s entire industrial sector.

 

In her speech, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized that the signing of the grant agreement between Scatec and the PTX Facility for the "Egypt Green Hydrogen Project" is the result of ongoing, fruitful cooperation between the Ministry of Planning, Economic Development, and International Cooperation of Egypt and the German Federal Ministry for Economic Cooperation and Development.

 

H.E. Dr. Al-Mashat added that green hydrogen has garnered global attention as one of the carbon-free fuels of the future and will play a pivotal role in the global energy transition, especially in light of declining reserves of conventional fossil fuels (coal, oil, and natural gas) and the environmental pollution caused by their use, which directly threatens human survival and progress.

 

H.E. Minister Al-Mashat highlighted that Egypt's energy sector offers numerous opportunities for the development of green hydrogen, as Egypt’s national resources enable the production of large quantities of electricity from renewable sources at highly competitive prices. This growing sector is subject to genuine political will to develop green electricity production, as evidenced by ongoing cooperation with various European development partners, such as the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) in implementing several green projects. This includes the development of the first green hydrogen production facility in the Suez Canal Economic Zone for green ammonia production.

 

H.E. Dr. Al-Mashat noted that international partnerships have resulted in many other green hydrogen projects, including the “Development of the First Green Hydrogen Production Facility in the Suez Canal Economic Zone,” which is being implemented by Scatec, Fertiglobe, Orascom, and the Sovereign Fund of Egypt.

 

The Minister of Planning, Economic Development, and International Cooperation also emphasized cooperation with international partners, including the German government and the European Union, through strategic partnerships in renewable hydrogen. These partnerships represent immense opportunities for Egypt to export hydrogen, following the signing of a Memorandum of Understanding (MoU) on green hydrogen between the Egyptian and German governments in 2022.

 

H.E. Dr. Rania Al-Mashat further spotlighted the energy pillar within the NWFE program, which works on reducing reliance on natural gas in Egypt's electricity sector, accelerating the development and deployment of renewable energy, and increasing the share of renewable energy to 42% of installed capacity by 2030.

 

H.E. Minister Al-Mashat confirmed that the Arab Republic of Egypt has the opportunity to become one of the world’s leading countries in the low-carbon hydrogen economy, which represents a significant opportunity for Egypt not only to meet its own energy needs but also to contribute to the global transition to clean energy. To this end, the government has taken significant steps to realize its green hydrogen potential, including the establishment of the National Green Hydrogen Council and the launch of the National Green Hydrogen Strategy in partnership with the European Bank for Reconstruction and Development, affirming Egypt’s commitment to supporting the transition to a green economy.

 

The agreement was signed on behalf of Scatec by Mr. Terje Pilskog, CEO of Scatec ASA, and Mr. Mohamed Amer, Deputy CEO of Scatec Egypt. On the German side, the signing was carried out by Mr. Thomas Engelmann and Mr. Nima Maddah, CEOs of the PTX Development Fund.

 

This signing aligns with the role of the Ministry of Planning, Economic Development, and International Cooperation in advancing economic and developmental cooperation with multilateral and bilateral development partners to support the country’s developmental vision, achieve integration and coordination between these partnerships and the state’s investment plan, and coordinate with various concerned Egyptian ministries and authorities. The ministry has also coordinated with relevant Egyptian ministries and authorities regarding the PTX Facility, and all details related to the mechanism were published on the Hub for Advisory, Finance and Investment for Enterprises, which is an integrated platform that connects development partners, implementing agencies, the government, and the local business community to enhance communication and link various private sector companies.