As Egypt accelerates its shift toward a low-carbon economy, its oil and gas sector remains both a strategic foundation and a catalyst for change. While the long-term energy vision is anchored in renewables, including green hydrogen, the near-term reality calls for pragmatic solutions. Blue hydrogen, produced from natural gas with carbon capture and storage (CCS), offers Egypt’s oil and gas industry a transitional pathway to reduce emissions while leveraging its core strengths.

Harnessing Existing Infrastructure

For decades, Egypt’s oil and gas industry has driven national energy security, economic growth, and regional partnerships. With vast natural gas reserves and a mature LNG export network, Egypt is well-positioned to transition into low-carbon hydrogen production. Blue hydrogen utilizes steam methane reforming (SMR) to extract hydrogen from natural gas, while capturing and storing the carbon dioxide generated in the process.

Rather than sidelining Egypt’s oil and gas sector, this approach repositions it. Existing processing facilities, pipelines, and industrial zones can be adapted for hydrogen production and CCS integration. This not only preserves infrastructure value but also opens the door to new technologies and job opportunities. As noted by a senior energy engineer, “Our industry is evolving; blue hydrogen enables us to decarbonize operations without abandoning the assets and expertise we’ve spent decades building.”

Economic Logic for a Transitional Era

While green hydrogen is the ultimate goal, it is still constrained by cost and scalability. Electrolysis powered by renewables demands significant capital and grid capacity. On the other hand, blue hydrogen can be deployed more quickly and cost-effectively by utilizing Egypt’s established gas value chain.

This economic advantage is drawing the attention of investors. Several pilot projects are under review to reconstruct gas infrastructure for hydrogen production and integrate CCS in industrial zones such as Suez and Alexandria. These early investments could generate export potential to Europe, where demand for low-carbon hydrogen is growing due to climate targets and energy diversification efforts.

Egypt’s strategic location, at the crossroads of the Mediterranean, Arab Gulf, and Africa, makes it a natural logistics hub for regional hydrogen trade.

Mitigating Environmental Risks

That said, there are rigorous environmental standards that blue hydrogen must meet. For instance, methane leakage during natural gas extraction is a major challenge. To ensure climate credibility, the resutling emissions must be minimized through improved monitoring, detection, and control technologies.

Similarly, the CCS component requires transparent oversight. Geological storage must be secure and continuously monitored to prevent carbon release over time. Egypt’s oil and gas sector is already exploring storage opportunities in depleted reservoirs; turning former hydrocarbon fields into climate assets.

If developed with integrity, blue hydrogen can significantly reduce the carbon intensity of Egypt’s natural gas while supporting heavy industries in their decarbonization efforts.

As Dr. Laila Mounir, a hydrogen strategy consultant with the Egyptian Gas Association, put it: “Blue hydrogen is not just a stopgap—it’s an accelerator. It empowers our oil and gas sector to lead Egypt’s energy transition while maintaining industrial competitiveness and energy security.”

Enabling Green Hydrogen through Capacity Building

Egypt’s national hydrogen strategy sees blue hydrogen as a stepping stone rather than a final destination. Its role is to build capacity, test market mechanisms, and prepare regulatory frameworks that will ultimately support green hydrogen.

Lessons learned from blue hydrogen, on safety, distribution, pricing, and carbon accounting, can directly inform future green hydrogen deployment. Similarly, the oil and gas workforce is gaining new skills in hydrogen handling, emissions monitoring, and CCS design.

By embedding blue hydrogen within its oil and gas sector, Egypt is effectively laying the foundation for a broader clean hydrogen economy, without delaying climate action.

Complementing Energy Diversification

Including blue hydrogen within Egypt’s energy mix reflects a balanced transition strategy. It reduces emissions in the short term, maintains energy reliability, and complements ongoing efforts to scale solar, wind, and green hydrogen. This integrated approach is crucial for avoiding energy supply gaps while meeting climate commitments.

Moreover, the oil and gas sector, traditionally seen as part of the problem, can become part of the solution. Through innovation, retraining, and cross-sector collaboration, it can lead Egypt’s decarbonization while maintaining economic resilience.

Looking Ahead

Egypt’s leadership in the Eastern Mediterranean Gas Forum and its growing role in regional energy diplomacy give it the leverage to shape future hydrogen trade routes. By looking at blue hydrogen as a strategic offering, Egypt can attract international partners, support domestic industrial decarbonization, and secure a stronger foothold in global clean energy markets.

Blue hydrogen is not a replacement for long-term green solutions; it is a realistic bridge. By anchoring its energy transition in the strengths of its oil and gas sector, Egypt is not only adapting to change, but actively shaping it.