Egypt’s abundant solar and wind power “enables the production of renewable energy at a very competitive cost, which is an important realization factor for green hydrogen production,” Masdar said.
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Masdar in the United Arab Emirates and Hassan Alam Utility in Egypt have signed an agreement with a state-sponsored Egyptian organization confirming that both parties will cooperate in the development of a large-scale green hydrogen project.
In a Sunday announcement, Masdar, owned by the Abu Dhabi National Fund Mubadara, announced two agreements relating to the Mediterranean coast and the facilities designated as the Suez Canal Special Economic Zone.
The Egyptian project aims for an electrolytic cell capacity of 4 gigawatts by 2030, producing 480,000 tonnes of green hydrogen annually.
Hydrogen, which is called a “universal energy carrier” by the International Energy Agency, has various uses and can be deployed in fields such as industry and transportation.
It can be produced in several ways. One method involves the use of electrolysis, where the electric current divides the water into oxygen and hydrogen.
When the electricity used in this process comes from renewable energy sources such as wind and solar, it is also called green or renewable hydrogen.
There is excitement in some quarters about the potential of hydrogen, but most of its production is now based on fossil fuels.
“Masdar and Hassan Alam Utility see Egypt as a hub for green hydrogen production, targeting the bunkering market, exporting to Europe and boosting local industry,” Masdar said in a statement. ..
“Egypt enjoys abundant solar and wind resources that enable the production of renewable energy at a very competitive cost, which is an important realization factor for green hydrogen production,” he added. rice field. “Egypt is also close to the market where demand for green hydrogen is expected to grow the most, offering strong export opportunities.”
Masdar’s reference to Europe is informative and shows how the hydrogen sector could develop in the future as major economies attempt to decarbonize.
July 2021, CEO of an Italian company Snam Outline the future vision of hydrogen, He said that “beauty” is that it can be easily stored and transported.
Talking to CNBC’s “Squawk Box Europe,” Marco Alverà talked about how current systems are used to facilitate the supply of hydrogen produced using renewable resources and biofuels.
“Now, when I turn on the heater in Italy, the gas is flowing from Russia and Siberia all the way through the pipeline,” he said.
“Tomorrow, we plan to use solar energy and wind resources to produce hydrogen in the North Sea of North Africa,” said Albera. “And that hydrogen can move through existing pipelines.”
As part of this, the European Commission, the executive body of the European Union, has announced plans to install a 40 GW renewable hydrogen electrolyzer capacity in the EU by 2030.
In addition to this goal, the Commission’s plan envisions an additional 40 GW for “exporting to the EU” and “neighboring regions of Europe”.
Over the last few years, many companies have focused on the topic of hydrogen.
In a recent interview with CNBCMichele DellaVigna, Goldman Sachs’ Commodity Equity Business Unit Leaders in the EMEA region sought to highlight their key role in the future.
“If we want to go to Net Zero, we can’t do that with renewable energy alone,” he said.
“Especially to manage seasonality and intermittentness, we need something that plays the role of natural gas today. That’s hydrogen,” continued Della Vigna, describing hydrogen as a “very powerful molecule.” bottom.
The important thing is to produce without emitting CO2, which is why we talk about green and blue hydrogen, “he said.
Blue hydrogen refers to hydrogen produced using natural gas (fossil fuel), which captures and stores CO2 emissions produced during the process.was A fierce debate about the role that blue hydrogen can play in the decarbonization of society.
“Whether it’s electrolysis or carbon recovery, we need to produce hydrogen in a clean way,” says Della Vigna. “And if we can do that, I think there will be a solution that could one day be at least 15% of the global energy market, which means it will be over $ 1 trillion a year.”
