As the world moves rapidly towards cleaner and more sustainable energy sources, green hydrogen is emerging as a cornerstone of this transition. Hydrogen, the most abundant element in the universe—making up around 75% of its mass—is lightweight, energy-dense, and can be stored for long periods, making it a promising solution for a zero-emission future.
In this report, Invest-Gate explores the growing significance of green hydrogen in Egypt’s economy and real estate sector. It highlights Egypt’s attractiveness to global investors, the country’s emerging leadership in the global green hydrogen race, and the major projects and figures that underscore its leadership in this field.
Egypt Leads the Arab World in Green Hydrogen Projects
In line with the global momentum, Egypt is making bold strides towards a sustainable future through ambitious investments in green hydrogen. As the global energy sector undergoes transformation, Egypt is positioning itself as a key player in reducing dependency on fossil fuels and expanding renewable energy use. This is part of a broader national vision to become a regional hub for clean energy, unlocking new opportunities for economic growth and enhancing Egypt’s influence in the global energy market.
Between 2021 and 2023, Egypt attracted an estimated $215.5 billion in foreign direct investment (FDI) in green hydrogen projects. The country ranks first in the Arab region in terms of announced or planned hydrogen initiatives, with 33 projects as of March 2024. Of these, 28 are focused on green hydrogen and green ammonia production, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). These projects represent over a quarter of all hydrogen projects across Arab nations.
Egypt’s Green Hydrogen Strategy: A Vision for 2040
As part of Egypt’s Vision 2030 for sustainable development and its shift toward a green economy, the government has launched an ambitious green hydrogen strategy targeting 2040. The plan aims to produce 5.8 million tons of green hydrogen annually, capturing
between 5% and 8% of the global market. This initiative is expected to reduce carbon emissions by 40 million tons per year, create around 100,000 jobs, and boost Egypt’s GDP by $10 to $18 billion. Building on its national strategy, Egypt has launched flagship projects that underline its global ambitions.
World’s Largest Green Hydrogen Plant in South Sinai
In a significant step towards becoming a global clean energy leader, Egypt has announced plans to build the world’s largest green hydrogen plant in South Sinai. With an estimated cost of $17 billion and covering an area of 127 square kilometers, the facility is set to produce up to 400,000 tons of green hydrogen annually. The project will be rolled out in three phases, with the first phase to be completed in 2030, the second in 2033, and the final phase in 2035.
Economic Importance of Green Hydrogen
Green hydrogen holds strategic value for Egypt as it aligns with the country’s goal to become a regional energy trading hub. It will enable Egypt to tap into the growing global hydrogen market, expected to multiply sevenfold by 2050, and secure around 8% of international market share.
Egypt’s unique advantages in renewable energy infrastructure make it ideally suited to lead in green hydrogen production. Integrating hydrogen into Egypt’s energy mix will also help shield the economy from oil price volatility and ensure energy security while supporting multiple industrial applications.
Egypt’s National Research Centre has confirmed the environmental and economic benefits of green hydrogen, noting the country’s high renewable energy potential and cost-effective hydrogen production capacity. This will not only support Vision 2035 but also contribute to reducing electricity prices and boosting the national economy.
Green Hydrogen and the Real Estate Sector
In line with global efforts to reduce the environmental impact of real estate, Egypt is promoting green construction. The country currently has 23 buildings certified under the LEED (Leadership in Energy and Environmental Design) program. Research and development in real estate technology is expected to play a key role in achieving net-zero emissions.
According to Oxford Economics, the global construction output could reach $15.2 trillion by 2030, a 42% increase compared to 2020. The International Finance Corporation (IFC) also sees green buildings as a $24.7 trillion investment opportunity in emerging market cities by 2030.
Egypt’s Competitive Edge
Thanks to its strategic location, abundant renewable energy resources, and supportive regulatory environment, Egypt is well-positioned to lead in the global green hydrogen market. The government continues to develop comprehensive strategies, streamline permitting processes, and secure international partnerships to attract investments and secure future market share.
With its ambitious roadmap and strong commitment, Egypt is not only contributing to the global energy transition but also reinforcing its role as a key player in shaping the future of clean energy worldwide.
Global Interest in Green Hydrogen
The global momentum behind green hydrogen is driven by a mix of environmental, economic, and political factors, chief among them the urgent need to address climate change. With advances in renewable energy technologies, green hydrogen has become a viable and scalable solution.
Bloomberg NEF projects that the global green hydrogen market could reach $700 billion by 2050. According to the International Renewable Energy Agency (IRENA), green hydrogen could supply 14% of the world’s energy demand by mid-century.
Major economies are investing heavily:
• European Union: €430 billion by 2030
• China: Over $100 billion over the next decade
• United States: $9.5 billion under the 2021 infrastructure bill to develop clean hydrogen technologies
Leading Global Projects
Notable international projects include:
• NEOM (Saudi Arabia): The world’s largest green hydrogen project with a planned output of 1.2 million tons/year by 2026
• HyDeal Ambition (Europe): Aiming to produce 3.6 million tons/year by 2030
According to McKinsey & Company, global demand for green hydrogen could surge to 660 million tons per year by 2050, up from about 90 million tons in 2020.