Cairo and Madrid aim for green hydrogen investment

From the newsletter

Egypt and Spain are exploring potential partnership opportunities for green hydrogen investment in the North African nation. This was the focal point of a meeting between Egypt’s Minister of Investment and Foreign Trade, Hassan El Khatib, and Javier Brey, the President of the Spanish Hydrogen Association (AeH2), during the Minister’s recent visit to Madrid.

• During the meeting, El Khatib emphasised that Egypt offers significant investment opportunities in hydrogen production, aligning with the country's strategy to expand green energy projects and boost their contribution to both domestic energy production and exports to regional and global markets. 

• The minister reaffirmed his Ministry’s commitment to supporting AEH2 members in investing and expanding within the Egyptian market and highlighted ongoing efforts to create a conducive business environment for the investors such as the formulation of financial, monetary, and trade policies.

More details

• The President of the Spanish Hydrogen Association  highlighted Egypt’s potential in green hydrogen production, emphasising the country’s competitive advantages in pricing as key factors driving interest among his association’s members. He also pointed out Spain’s increased investment in its port infrastructure, showcasing the country’s preparedness to facilitate a regular and efficient green hydrogen supply.

• During the meeting, the two leaders agreed that the AeH2 would send a delegation to Egypt to explore available investment opportunities in the green hydrogen sector. The delegation will also meet with key Egypt-based stakeholders, including government officials, research institutions, and manufacturers of green hydrogen and its derivatives, to discuss potential collaborations and initiatives.

• Established in 2002, AEH2 brings together more than 300 stakeholders in the green hydrogen value chain in Spain, including renewable energy promoters, equipment and component manufacturers, engineering firms, transporters, and other organisations connected to the sector. The Association’s goal is to promote the development of hydrogen technologies as a key energy vector, supporting its applications across industrial and commercial sectors while advancing the transition to a cleaner, more sustainable energy future.

• Spain is rapidly positioning itself as one of Europe’s leading producers of green hydrogen. Its National Integrated Energy and Climate Plan sets ambitious targets, including the installation of 12 GW of electrolysers by 2030 and ensuring that 74% of the hydrogen used in the country is green by that time. 

• With 29 announced projects backed by a USD 40 billion investment, Egypt is currently leading in green hydrogen production in Africa and is also a key global player in this field. Its vast natural resources enable the country to produce green hydrogen at competitive costs, providing a unique advantage in a market where high production costs have led some players to scale back on investments. 

• By 2030, Egypt aims to generate 60% of its electricity from renewable sources, further reinforcing its role in the global energy transition. Its location in the global “sun belt,” where it averages 9-11 hours of sunshine a day with few cloudy days, gives it high potential for harnessing renewable energy, particularly solar power, for hydrogen production. 

Our take

• As Spain strives to be a leading green hydrogen producer in Europe, its collaboration with Egypt could provide significant mutual benefits. By combining Spain’s technological expertise with Egypt’s renewable energy potential, the two countries can strengthen their positions in the emerging global hydrogen market. 

• The collaboration between Egypt and Spain could serve as a model for other nations looking to expand their green hydrogen capabilities. By leveraging Egypt's vast renewable energy resources and Spain's advanced hydrogen technologies and infrastructure, this partnership demonstrates how countries with complementary strengths can work together to accelerate the development of the green hydrogen sector. 

• Egypt's efforts to engage industry players in Spain mark a shift from traditional government-level discussions to directly targeting key industry players with decision-making capacity. This approach reflects Egypt's proactive strategy to foster partnerships with influential stakeholders, ensuring quicker implementation and more impactful collaboration in expanding its green hydrogen sector.