Egypt and Bavaria to partner in green hydrogen production

From the newsletter

Egypt and the German state of Bavaria have entered into an agreement to promote the production of green hydrogen and clean energy transition. The Work Plan of the Egyptian-Bavarian Hydrogen Working Group was signed during a January 28-30 meeting between a Bavarian Economic Delegation and Egyptian officials in Cairo. 

• The bilateral agreement aims to promote collaborative research, investment opportunities, and technological exchange within the low-carbon hydrogen sector in the two regions.  Bavaria aims to leverage its expertise in research and technology to assist Egypt in developing modern infrastructure for green hydrogen production, while also connecting it with potential buyers in Germany.

• The Working Group was established in 2024 following a visit to Egypt by Bavaria’s Minister-President, Dr. Markus Söder. He, alongside Egypt’s Prime Minister, Mostafa Madbouly, witnessed the signing of a joint declaration of intent aimed at strengthening bilateral collaboration in the field of renewable energy.

More details

• The declaration focuses on several areas of green hydrogen collaboration, including the assessment of production capabilities, expansion of logistical routes, and advancement of related technologies. It also emphasizes the promotion of research and development throughout the green hydrogen production chain.

• This initiative aligns with Bavaria’s Energy Plan 2040, which outlines the state’s strategy for achieving climate neutrality in energy supply by 2040. On the international stage, the plan focuses on fostering partnerships with green hydrogen-producing countries to secure future imports of green hydrogen. Additionally, the Plan encourages Bavaria to promote the export of its green hydrogen technologies and drive international cooperation in green hydrogen research through targeted missions abroad.

• Ultimately, this Plan aligns with Germany's National Hydrogen Strategy, which aims to achieve greenhouse gas neutrality by 2045. As part of this ambition, the German government has committed to investing €4 billion in Africa’s green energy sector by 2030. 

• In addition to Egypt, Germany is supporting green hydrogen initiatives across several African countries, including South Africa, Namibia, Tunisia, Algeria, Mauritania, Morocco, and Kenya, further solidifying its role in driving Africa’s renewable energy transition.

Our take

• The partnership between Egypt and Bavaria mirrors a broader trend across Africa and the EU. While the EU boasts technological expertise, it faces challenges in sourcing sufficient renewable energy, whereas Africa has vast potential for renewable resources but lacks the necessary expertise. This complementary dynamic is likely to foster more such partnerships, as both regions collaborate to meet their respective energy and decarbonization goals.

• With countries globally striving to hit the 2050 carbon neutrality goal, collaborations like this one will become increasingly common. Expect to see more partnerships, where countries leverage their strengths to tackle climate change while driving economic growth in tandem, creating a sustainable future for all.

• Bavaria's involvement in climate partnerships in Africa breaks from the usual national government-level engagements. This state-level collaboration highlights the growing role of regional governments in driving global sustainability efforts, potentially paving the way for more subnational governments to lead in renewable energy partnerships.