Country: Egypt

Document type: National Strategy

Title: Green Hydrogen Strategy (media report)

Approved: November 2023

Media reporting noted that the strategy has the objective of positioning Egypt to be able to access 5-8% of the global hydrogen market, as well as contributing to carbon emissions reduction of 40 million tonnes by 2040.

In December 2023, the State Information Service reported that the Energy and Environment Committee of the House of Representatives had approved a government-drafted bill that provides for tax and non-tax incentives for green hydrogen projects and its derivatives. In January 2024, the State Information Service reported that Parliament had approved the draft law. Media reports provided specifics on the law noting, amongst other things, various tax incentives to green hydrogen projects and their expansions, including an investment cash incentive the “Green Hydrogen Incentive,” ranging from 33% to 55% of the value of the tax paid when declaring income from the project’s direct activities or expansions, depending on relevant circumstances. Other incentives reported include exemptions from value-added tax for equipment, tools, machines, devices, raw materials, and supplies, except passenger cars. The value-added tax for exports of green hydrogen and derivatives projects is reported as set at “zero percent”.

In June 2023, media reporting noted that the Egyptian Government had published a roadmap for green hydrogen, which included a discussion of challenges facing local producers as well as indicating potential pathways for accelerated production.

To support development of the national strategy, in November 2022 at COP27 hosted by Egypt, the State Information Service reported that the Egyptian Government announced the framework of Egypt’s low-carbon hydrogen strategy.

Media reports indicate the Egyptian Government signed several framework agreements during COP27 with foreign companies to construct green hydrogen and ammonia facilities in the Suez Canal Economic Zone (SCZone).

During COP27, the EU and Egyptian Governments signed a bilateral Memorandum of Understanding (MoU) on a strategic partnership on renewable hydrogen. The MoU signature followed the Joint Statement issued earlier by the EU and Egyptian Presidents at COP27. The strategic partnership is seen as serving as a central block in building an EU-Mediterranean Renewable Hydrogen Partnership. The MoU is intended to serve as a framework to support long-term conditions for the development of a renewable hydrogen industry and trade across the EU and Egypt, including infrastructure and financing.


January 2024