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Title page 1
Contents 8
Foreword 4
Acknowledgements 6
Abbreviations and acronyms 12
Executive summary 16
1. Unlocking low-carbon hydrogen investment in Egypt: scene-setting 19
1.1. Context and objective 20
1.2. Framework implementation process in Egypt 21
1.2.1. Description of the Framework 21
1.3. Egypt's country context 24
1.3.1. Macroeconomic conditions 25
1.3.2. Egypt's financial sector 26
1.3.3. Egypt's energy landscape 27
1.3.4. Egypt's industry sector 29
1.3.5. Country strategy, policies and mechanisms 31
1.4. Egypt's low-carbon hydrogen ambition 35
1.4.1. Egypt's green hydrogen project landscape 35
References 39
Notes 46
2. Assessing cost competitiveness of low-carbon hydrogen and green derivatives in Egypt 48
2.1. Objective and methodology 49
2.2. Analytical scope 50
2.2.1. Green hydrogen production system 50
2.2.2. Scenarios for green hydrogen production 52
2.3. Blue hydrogen 54
2.4. Caveat on green hydrogen and blue hydrogen 56
2.5. Results 57
2.5.1. Green hydrogen 57
2.5.2. Blue hydrogen 60
2.6. Green hydrogen derivatives 61
2.6.1. Green ammonia 61
2.6.2. Green steel: green iron for export to the European Union 64
2.6.3. E-methanol 66
2.7. Key findings and conclusions 69
References 71
Notes 73
3. Assessing financial solutions for low-carbon hydrogen in Egypt 74
3.1. Objective 75
3.2. Required infrastructure for green hydrogen production in Egypt 75
3.2.1. Renewable energy and battery energy storage systems 75
3.2.2. Transmission grid and hydrogen pipelines 75
3.2.3. Electrolyser 77
3.2.4. Desalination 77
3.2.5. Port infrastructure for export of low-carbon hydrogen and its derivatives 77
3.3. Assessing the investment needs 78
3.4. Identifying financial solutions and enabling investment conditions 79
3.5. Key assumptions: impact of different risk mitigation instruments 82
3.5.1. Green premium 82
3.5.2. CAPEX grant 82
3.5.3. Concessional loans 83
3.5.4. Carbon price 83
3.6. Impact of different instruments on the Levelised Cost of Hydrogen 84
3.7. Summary and conclusions 88
References 91
Notes 94
4. Financial solutions and enabling investment conditions 95
4.1. Objective 96
4.2. Identified financial solutions and recommendations for improving the enabling investment conditions 96
4.2.1. Targeted use of CAPEX grants 97
4.2.2. Mitigating FX currency risk through participation of domestic banks 98
4.2.3. Addressing offtake risk: contract-for-difference 99
4.2.4. Power sector reform as a foundation for green hydrogen investment 102
4.2.5. Prioritise investment in common user infrastructure, ensuring both accessibility and high quality 104
4.2.6. Strengthen the skillset and domestic industry 107
4.3. Conclusions and areas of future analysis 108
References 109
Notes 111
Annex A. Methodology and input data 112
Methodology 112
Input data 113
References 117
Annex B. Techno-economic assessment results 119
Objective 119
Green hydrogen: Scenario A 119
Green hydrogen: Scenario B 125
Green hydrogen: Scenario C 126
Green hydrogen: Scenario D 127
Blue hydrogen 129
Annex C. Investment need assessment 134
Objective 134
Result 134
Annex D. Investment survey 135
Objective 135
Survey methodology 135
Annex E. Framework consultation process 137
Objective 137
Framework implementation process 137
Figure 1.1. The step-by-step approach of the OECD Framework implementation process 22
Figure 1.2. Electricity remains the largest CO₂ emitter in Egypt 28
Figure 1.3. Egypt's industry relies heavily on fossil fuels, with a low share of renewables 29
Figure 1.4. Green hydrogen and derivatives projects in Egypt, 2025 snapshot 36
Figure 2.1. Green hydrogen production: system configuration 50
Figure 2.2. The four proposed scenarios for green hydrogen production 54
Figure 2.3. Blue hydrogen production via steam methane reforming: system configuration 55
Figure 2.4. Blue hydrogen production via autothermal reforming: system configuration 56
Figure 2.5. Sensitivity analysis at 98% dedicated renewable energy sources 58
Figure 2.6. Levelised Cost of Green Hydrogen for the four proposed scenarios 59
Figure 2.7. Levelised Cost of Green Hydrogen with different storage options 60
Figure 2.8. Levelised Cost of Blue Hydrogen production for the proposed cases 61
Figure 2.9. Green ammonia for local storage: system configuration 62
Figure 2.10. Green ammonia for export 63
Figure 2.11. Green ammonia: impact of the NH₃ synthesis minimum capacity factor 64
Figure 2.12. Three proposed scenarios for green iron export to the European Union 65
Figure 2.13. Levelised Cost of Green Iron for the three proposed scenarios 66
Figure 2.14. E-methanol production: system configuration 68
Figure 2.15. Levelised Cost of E-methanol for the three proposed scenarios 69
Figure 3.1. Initial investment cost for green hydrogen production 78
Figure 3.2. Findings from the OECD investor survey in Egypt 80
Figure 3.3. Instrument effectiveness in reducing the cost of green hydrogen 85
Figure 3.4. Instrument effectiveness in reducing the cost of e-methanol 86
Figure 3.5. Instrument effectiveness in reducing the cost of green iron 87
Figure 3.6. Impact of multiple instruments to close the cost-competitiveness gap 89
Figure 4.1. Leveraging CAPEX grants and local currency loans for green hydrogen 99
Figure 4.2. H2Global replicability tailored to the Egyptian context 101
Figure 4.3. Tax revenue from the simulated H2Global renewable ammonia auctions 101
Figure 4.4. Peer-to-peer pooling structure for green hydrogen in Egypt 104
Boxes 10
Box 1.1. Egypt's Green Hydrogen Technical Advisory Executive Committee under the National Cabinet of the Prime Minister 24
Box 1.2. The Nexus of Water, Food and Energy Platform 26
Box 1.3. Carbon border measures in the European Union and the United Kingdom 31
Box 3.1. Impact of guarantee and concessional loan on competitive gap analysis 81
Box 3.2. Integrating multiple instruments: A practical example 89
Box 4.1. Blue Dot Network, Infrastructure Certification Scheme 107
Figure A A.1. Duration curves for wind and solar power generation for Suez area in 2019 112
Figure A B.1. Scenario A: impact of the absence of H₂ storage (BESS only) 120
Figure A B.2. Scenario A: results in the absence of H₂ storage 121
Figure A B.3. Scenario A: LCOH varies with BESS CAPEX at 98% dedicated RES 121
Figure A B.4. Scenario A: LCOH decreases with higher H₂ storage capacity 122
Figure A B.5. Scenario A: LCOH decreases with higher RES to electrolyser nominal power ratio 123
Figure A B.6. Scenario A: LCOH varies with different storage options 124
Figure A B.7. Scenario A: initial per different storage options 124
Figure A B.8. Scenario B - LCOH decreases with higher H₂ storage capacity 125
Figure A B.9. Scenario 2 - estimated LCOH for current and future scenarios 126
Figure A B.10. Scenario C: LCOH decreases with higher H₂ storage capacity 127
Figure A B.11. Scenario D: LCOH increases with a larger share of dedicated renewable energy sources 128
Figure A B.12. Scenario D: LCOH decreases with a larger H₂ storage capacity 128
Figure A B.13. Steam methane reforming with carbon capture plant for blue hydrogen production 129
Figure A B.14. Autothermal reforming with combustion carbon capture plant for blue hydrogen production 131
Figure A B.15. Levelised Cost of Hydrogen for the two different simulated plants 132
Figure A B.16. Cost of CO₂ avoided for the two simulated plants 132
Figure A B.17. Breakdown of the initial investment for blue hydrogen production 133
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