Egypt's $17bn Green Hydrogen Plant in South Sinai: Powering Africa's Hydrogen Ambitions
Key Ideas
- The Egyptian Government plans to build a $17bn green hydrogen plant in South Sinai, set to produce up to 400,000 tonnes of green hydrogen per year.
- The project includes a 3.1GW solar array with pumped hydro storage to ensure continuous operation, with completion phases expected by 2035.
- Africa's hydrogen ambitions, including 41 projects in development, are seen as key to supplying 10 million tonnes of green hydrogen annually to Europe under the REPowerEU Plan.
- Regulatory gaps and infrastructure challenges in Africa continue to hinder progress, with countries like Namibia and Mauritania leading in large-scale hydrogen projects.
The Egyptian Government has announced plans for a major $17 billion green hydrogen plant in South Sinai. The project, launched by the Investment Opportunities Platform of the General Authority for Investment and Free Zones, aims to produce 400,000 tonnes of green hydrogen annually. The plant will cover 127 square kilometres and be powered by a 3.1GW solar array supported by pumped hydro storage. This innovative setup will allow for round-the-clock operations by using stored water to generate electricity at night.
The first phase of the project is slated for completion by 2030, with subsequent phases to follow in 2033 and 2035. Additionally, the plant is expected to export hydrogen to Europe via ships passing through the Suez Canal, contributing to the global shift towards green energy.
In a broader context, Africa is gearing up to play a significant role in the hydrogen market. Despite having 41 green hydrogen projects in the pipeline, the continent faces challenges such as regulatory uncertainties and infrastructure development hurdles. The Energy Industries Council's Africa OPEX Report underscores the need for reliable offtake agreements and a comprehensive regulatory framework to support the sector's growth. African countries like Namibia and Mauritania are spearheading large-scale hydrogen initiatives as part of the continent's aim to supply green hydrogen to Europe.
Furthermore, countries like Tunisia and Algeria are strategically positioned to contribute to the Southern Hydrogen Corridor, a project that aims to import substantial amounts of green hydrogen into Europe. With Africa's renewable energy capacity already at 61.1 GW and Europe's ambitious plans to import 10 million tonnes of green hydrogen annually from the continent, the future of green hydrogen production in Africa looks promising.