Egyptian President, Abdel-Fattah el-Sisi and Norwegian Prime Minister, Jonas Gahr Støre announced the plans on the final day of the Climate Implementation Summit, which saw over 100 heads of state and governments gather to work towards the implementation of existing climate agreements.
Set to be established in cooperation with the Norwegian energy company, Scatec, which has acted as a major developer of the 1.8GW Benban solar park in Aswan, Egypt, President el-Sisi said the project provides “a practical model of investment partnership that stimulates sustainable economic development with a focus on the role of the national and foreign private sector besides the government’s role, working side by side in this fruitful sector.”
Expected to built in Ain Sokhna on the Red Sea, the plant forms part of Egypt’s wider green hydrogen strategy, it is hoped the project will aid the country in reaching its vision of producing green hydrogen at the cheapest price worldwide.
The country’s strategy, set to be implemented in cooperation with the European Bank for Reconstruction and Development and the Arab Union for Sustainable Development and Environment hopes to help Egypt contribute to 8% of the global hydrogen market.
The Egyptian President, commented, “Green hydrogen has become one of the most important solutions on the way toward a green economy during the coming years. It is an example where developing countries, including Egypt, are taking great steps. However, we still have to face challenges resulting from the tendency of some countries to back local green hydrogen in a way that decreases their production cost.
“This causes imbalance in the global hydrogen market and contributes to undermining the competitiveness of the green hydrogen produced in developing countries compared to the developed countries.”
In addition to the Red Sea project, the Summit saw the launch of the Global Renewable Hydrogen Forum, which looks to establish a public-private platform designed to facilitate large-scale renewable hydrogen deployment to foster decarbonisation for local industries.