Minister of Electricity and Renewable Energy Mohamed Shaker stated that Egypt has the ability to produce green hydrogen at the lowest costs in the world starting from $2.68 per kilogram in 2025 and will reach $1.70 per kilogram in 2050.
Shaker’s remarks came during a discussion panel titled “The Role of Egypt as a Renewable Energy Hub” which took place on the second day of the Economic Conference- Egypt 2022.
Shaker added that these low costs would enable Egypt to achieve its ambitious plan of taking 8% of the global hydrogen market share. He also noted that the huge returns from such a strategy would increase Egypt’s gross domestic product (GDP) by $10-18 billion by 2025, in addition to providing more than 100,000 job opportunities in case of increasing the use of local capacities of hydrogen.
The minister also noted that this strategy will help reduce Egyptian imports of petrochemicals and achieve the carbon emissions reduction goal of reaching 55 million tons of reduced carbon per year by 2050.
Additionally, Shaker mentioned that Egypt has signed several memoranda of understanding (MoUs) with the Ministry of Petroleum and Mineral Resources and the European Bank for Reconstruction and Development (EBRD) to get funds for preparing the national hydrogen strategy which will be announced during COP 27 summit.
This is in addition to the other MoUs that have been made with major international companies for hydrogen production, Shaker said.