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Siemens, Egypt agree to develop hydrogen projects, 200 MW electrolyzer facility

Highlights

Both will explore hydrogen projects with export potential

Egypt has hydrogen agreements with Eni, Belgium's DEME

Egypt wants to have 43% of power from renewables by 2035

Siemens Energy and the state-owned Egyptian Electricity Holding Co. have signed a memorandum of understanding to develop a hydrogen-based industry with export potential, including a 100-200 MW pilot electrolyzer facility, as the North African gas producer seeks to develop a clean energy industry.

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"Siemens Energy and EEHC will jointly promote investment, technology transfer, and implementation of projects related to hydrogen production, based on renewable energy," Siemens said in an Aug. 25 statement.

Both companies will develop the 100-200 MW electrolyzer facility that "will help to drive early technology deployment, establish a partner landscape, establish and test regulatory environment and certification, set up off-take relations, and define logistic concepts," the statement added.

Egypt, the most populous Arab country, is seeking to produce 43% of its power from renewables by 2035.

EEHC signed in March an agreement with Belgium's DEME group to explore the production of green hydrogen in the North African country.

Eni deal

In July, Eni signed an agreement with EEHC and the Egyptian Natural Gas Holding Company (EGAS) to assess the technical and commercial feasibility of projects for the production of hydrogen in the country.

The two companies will explore the production of green hydrogen from renewables and blue hydrogen through the storage of CO2 in depleted gas fields, Eni had said at the time.

Egypt is increasingly looking to gas in its upstream development efforts and has ambitious plans to raise domestic demand through the increased use of gas in power generation, heating, and transportation.

The North African country holds some 75 Tcf (2.1 Tcm) of gas reserves, the third largest in Africa after Nigeria and Algeria.