The Egyptian government has signed agreements with seven international companies to develop green hydrogen projects in the Suez Canal Economic Zone (SCZONE) potentially worth $40 billion.

The signing ceremony at the government’s headquarters took place on 28 February, in the presence of Egyptian Prime Minister Dr Mostafa Madbouly, according to an official statement seen by Kallanish.

The project investment pipeline comprises a pilot phase of about $12 billion, and nearly $29 billion for the first phase of development, the government says, without providing details on the companies and projects.

According to reports, the MOUs were signed with SK E&C, Pash Global, Gamma Construction and Meridiam, AMM Power, United Energy Group, El Tokkel Geela and Smart Energy.

Hala Al-Saeed, planning minister, says the “signing marks the beginning of investment partnerships and new projects, all of which contribute to achieving the goals of the National Green Hydrogen Strategy.” She also mentioned the achievement of the sovereign fund of Egypt in launching the first integrated green ammonia production plant in Africa and emerging markets a few months ago, in partnership with international companies.

The fund seeks to promote Egypt as a regional centre for green energy, and this is reinforced by the “serious approach” by the state and all its institutions to stimulate investment in this sector, she notes. The efforts include the investment incentive packages launched by the state recently.

In January, Egypt’s parliament approved a draft law to incentivise green hydrogen and derivative investments. The country said earlier it was targeting 8% of the global green hydrogen market by 2040, having inked nearly 30 MOUs for an estimated investment of $85 billion.

Some of the incentives include up to 55% in tax credits; discounts of up to 30% in seaports, maritime transport and ship servicing fees; and exemption from value-added tax on equipment and raw materials.

Kallanish has contacted Egypt's planning ministry and SCZONE for comments.