Egypt is set to establish the largest green hydrogen plant in the country, with a groundbreaking $17 billion initiative aimed at positioning Egypt as a global leader in the green hydrogen market. The project, announced by the General Authority for Free Zones and Investment (GAFI) in March, will span 127 km² and produce 400,000 tons of liquefied hydrogen annually.
Leveraging Egypt’s abundant clean energy resources—particularly solar and wind—the plant will generate its energy entirely from green sources, operating off the national grid. The facility’s base capacity will be 3.1 gigawatts, using solar energy during the day and pumped hydro storage at night to ensure continuous production. The plant will export pure liquid hydrogen directly to Europe through a self-sufficient delivery system.
The project’s first phase is expected to be completed by 2030, followed by additional phases in 2033 and 2035. Egypt’s Green Hydrogen Strategy, launched at COP27, sets a roadmap for expanding green hydrogen production, aiming to increase its hydrogen economy sevenfold by 2050. The country also aims to capture 5% of the global hydrogen market by 2030 and 8% by 2040.
Medhat Youssef, a petroleum and energy expert, commented on Egypt’s ambitions, stating, “We have places in Egypt where the sunlight hours are ideal for the production of solar power,” emphasizing Egypt’s competitive edge in this sector. He also noted that while the cost of natural gas is lower than green hydrogen, “the long-term economic potential of green hydrogen outweighs the initial costs.”
The Egyptian government is offering incentives to attract investors, including land grants, tax exemptions, and allowances for transforming green hydrogen into ammonia for export. “For green hydrogen to be traded, it needs to be transformed into ammonia, and Egypt possesses the ports that will enable it to engage in such trade,” said Youssef. Egypt’s strategic ports and ideal locations for solar power generation further enhance its ability to become a major exporter of green hydrogen.
The $17 billion green hydrogen initiative is part of Egypt’s broader commitment to sustainable development, with the country targeting 42% of its electricity from renewable sources by 2035. This mega-project is expected to boost Egypt’s GDP by $10–18 billion and create over 100,000 new jobs.
This green hydrogen project is a key step in Egypt’s journey to becoming a global energy powerhouse, supported by substantial investment, favorable natural resources, and an attractive business environment.
