Siemens Energy to Build Green H2 Industry in Egypt

German company Siemens Energy has signed a Memorandum of Understanding with the Egyptian Electricity Holding Company to jointly develop hydrogen-based industry in Egypt with export capability.

The agreement was signed by Christian Bruch, President and CEO of Siemens Energy, and Gaber El- Dessouki, Chairman of the Board of Directors of the Egyptian Electricity Holding Company (EEHC), at a ceremony in Cairo, witnessed by Dr. Mostafa Madbouly, Egypt’s Prime Minister, and Mohamed Shaker, the Minister of Electricity and Renewable Energy.

Siemens Energy is an energy company formed by the spin off of the former Gas and Power division of Siemens Group and includes a 67% share of Siemens Gamesa. The company provides innovative technologies spanning renewable energy, hydrogen production, and logistics, as well as financial and technical assistance.

The recent agreement builds on a letter of intent signed in January between Siemens Energy and EEHC and provides the basis for establishing and developing long-term cooperation to scale up hydrogen-based industry in Egypt. Siemens Energy and EEHC will jointly promote investment, technology transfer, and implementation of projects related to hydrogen production, based on renewable energy in Egypt.

“We are proud to extend our long history of collaboration with Egypt into this emerging industry that has the capacity to significantly decarbonize industry and expand economic diversity. The development of a homegrown hydrogen ecosystem and value chain in Egypt has the potential to deliver a more sustainable and prosperous future for Egyptians,” said Christian Bruch.

“This agreement will support EEHC and the Egyptian state in opportunities to localize and maximize the use of the green hydrogen industry. With a track record of jointly delivering projects of strategic importance for Egypt, Siemens Energy is the ideal partner. Together, we will seek to benefit from our human resources, our trained cadres, and our abundant natural resources of renewable energy in establishing an industrial sector based on green hydrogen in Egypt,” said H.E. Mohamed Shaker

As part of initial steps, Siemens Energy and EEHC will pursue the development of a pilot project, comprising 100 to 200 MW of electrolyzer capacity, which will help to drive early technology deployment, establish a partner landscape, establish and test regulatory environment and certification, setup off-take relations, and define logistic concepts, said Siemens Energy.

The firm added, Egypt has a rich mix of renewable energy resources, a strong industrial base, developed infrastructure and access to markets, providing a solid foundation on which to develop a robust green hydrogen industry.

Egypt’s targeted renewables capacity is 20% of the energy mix by 2022 (12% wind, 6% hydro, and 2% solar) and 42% by 2035 (22% solar photovoltaics (PV), 14% wind, 4% concentrated solar power (CSP), and 2% hydro).