The Egyptian Government has announced plans to develop a 400 kt/year green hydrogen plant in South Sinai (north-eastern Egypt), which would be developed in three phases on an area of 127 km2 and would require a total investment of US$17bn. The plant’s electrolysers would be powered during daytime by a 3.1 GW solar array, supported by pumped-storage hydropower. At night, the stored water would flow downhill, driving electricity-generating turbines to ensure continuous operations. The first phase of the project is expected to be completed in 2030, the second in 2033 and the third in 2035. The plant could also potentially export hydrogen to Europe via the Suez Canal.
Egypt is targeting investments of US$60bn in the coming decades to become a global centre for green hydrogen and green ammonia. In August 2024, the Egyptian Government unveiled its National Low-Carbon Hydrogen Strategy, in which the country aims to take a share of about 8% of the global market by 2040 by producing 5.6 Mt/year of hydrogen for export.