Egypt's Green Hydrogen Future Hinges on Innovative Financing
Cairo, Monday, 22 September 2025.
GH2 highlights a funding gap for green hydrogen in Egypt, despite ambitions to lead in this field. Only 4% of projects reach final investment decisions, underscoring the need for creative financial solutions.
Innovative Financing: A Key to Egypt’s Hydrogen Ambitions
In a world where green hydrogen is gaining traction as a sustainable energy solution, Egypt stands at a crossroads. GH2 has made it clear that innovative financing is essential for Egypt to become a leader in this field. Despite over 30 memoranda of understanding (MoUs) signed in recent years, a mere 4% of renewable hydrogen and ammonia projects globally have reached a final investment decision. This statistic reveals a significant gap that needs addressing [1].
The Forum’s Call to Action
During the 2025 Cairo Regional Forum on Financing Renewables, Green Hydrogen, and Green Ammonia, GH2’s CEO, Jonas Moberg, emphasised the need for creative financing solutions. He highlighted that while the role of renewables is increasingly evident, progress is slow but steady. To expedite the transition, equity bridge loans and other innovative financial tools could play a pivotal role in reducing risks and bridging the cost gap between green and grey hydrogen [1][2].
Challenges and Opportunities in Egypt
Egypt’s high interest rates, ranging from 16-18%, offset the benefits of its cheap solar and wind power, priced at just 2 cents per kilowatt-hour. This economic landscape presents both challenges and opportunities. The government has made substantial land allocations for renewables, capable of generating 180 gigawatts of clean power. However, the current grid can handle only 36 gigawatts, with a storage capacity limit of 60 gigawatt-hours. Overcoming these bottlenecks is crucial for Egypt to harness its full renewable potential [1].
Strategic Integration and Industrial Potential
GH2’s Deputy CEO, Joe Williams, pointed out that integrating green hydrogen into Egypt’s local economy, particularly in the steel and fertilizer industries, could unlock significant potential. As one of Africa’s largest steelmakers, Egypt has a unique opportunity to decarbonize this sector. Harnessing green hydrogen in these industries could not only reduce emissions but also create a competitive edge for Egypt on the global stage [1][3].
Conclusion: A Path Forward
The path to a green hydrogen future in Egypt is fraught with challenges but also ripe with opportunities. By embracing innovative financing and addressing infrastructural constraints, Egypt can position itself as a leader in the global energy transition. As GH2’s forum discussions suggest, the journey may be step-by-step, but with strategic moves, the destination is within reach [1][2].