$20 Billion.. Investments expected in green fuels in Egypt

·         Facing climate change

Given the importance of reducing carbon in the oil and gas sector, Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources, announced the signing of a new cooperation between Egypt and Germany in the fields of liquefied natural gas and green hydrogen with the aim of contributing to securing clean energy supplies, achieving sustainable development and confronting climate change.

Eng. Tarek El-Molla explained that the agreement with Germany aims to support cooperation at the governmental and private sector levels between the two countries in the field of energy trade in parallel with achieving the commitments of the Paris Climate Agreement, pointing to the importance of the declaration of intent signed with Germany in the field of hydrogen to benefit from its expertise and advanced technology.

·         Carbon Reduction Day

The Minister of Petroleum stated that the Carbon Reduction Day, scheduled for November 11, will be an opportunity to discuss and coordinate ways of financing and technologies to provide gas resources in more responsible and environmentally friendly ways with minimal impacts on the climate.

The first declaration of intent signed between the Egyptian Ministry of Petroleum and Mineral Resources and the German Ministry of Economic Affairs and Climate Action includes cooperation in the field of liquefied natural gas and promoting it at the governmental and private sector levels.

·         Encourage  investments

The cooperation includes encouraging investments and implementing joint transportation and distribution projects related to liquefied natural gas, with the possibility of supporting dialogue with the aim of launching initiatives for cooperation in the field of liquefied natural gas, forming joint working teams, and holding meetings and workshops.

The cooperation aims to contribute to opening prospects for mutual benefit in parallel with efforts to protect the environment and climate through the production, processing, use and transfer of green hydrogen, and to enhance and deepen cooperation between the two sides to promote sustainable development and reduce greenhouse gas emissions, taking into account the Paris and Glasgow climate agreements, benefiting from the experiences of the two countries in this regard. The field is the implementation of joint commercial projects, the participation of research institutions in the implementation of the agreed activities, the use of modern German technologies in the projects that are implemented in Egypt, and the support of pumping joint investments, with the possibility of the German side importing hydrogen produced from these projects.

·         High percentage of renewable energy

 In this regard, the journalist Nashat Al-Daihy said that Egypt uses 80% of traditional fuels such as gas and gasoline, and 20% of renewable energy represented by wind and sun, and it is expected that the percentage of renewable energy will rise to 42% of energy during 2035.

Nashaat Al-Daihi explained that the volume of solar energy in 2015 was 1.4 giga, and now it has increased to more than 10 giga,   7 times, and Egypt exports electricity to Sudan with a volume of up to a third of a giga, and to Libya with an estimated volume of 2 giga, adding that there are billions of dollars in investments in solar energy in the coming period. This will turn Egypt into a center for the production of clean energy.

·         Investments of $20 billion

He pointed out that expectations indicate that there will be investments of $20 billion in green fuels during the coming period. Egypt has 16 notes to separate hydrogen from oxygen from water, and green hydrogen is called green energy; because the electricity used in the season is from solar or wind energy, and therefore the fuel is environmentally friendly.