Siemens Energy, a German energy company, has signed a memorandum of understanding with the Egyptian Electricity Holding Company (EEHC) to jointly develop a hydrogen-based industry in Egypt with export capability.
The agreement builds on a letter of intent signed in January between Siemens Energy and EEHC and provides the basis for establishing and developing long-term cooperation to scale up the hydrogen-based industry in Egypt.
The two companies will jointly promote investment, technology transfer, and implementation of projects related to hydrogen production, based on renewable energy in Egypt.
Maximising the use of the green hydrogen industry
The agreement was signed by Christian Bruch, President and CEO of Siemens Energy and Gaber El- Dessouki, Chairman of the Board of Directors of the EEHC, at a ceremony in Cairo, witnessed by H.E. Mostafa Madbouli and H.E.Mohamed Shaker.
“This agreement will support EEHC and the Egyptian state in opportunities to localise and maximise the use of the green hydrogen industry. With a track record of jointly delivering projects of strategic importance for Egypt, Siemens Energy is the ideal partner. Together, we will seek to benefit from our human resources, our trained cadres, and our abundant natural resources of renewable energy in establishing an industrial sector based on green hydrogen in Egypt,” said H.E. Mohamed Shaker.
As part of initial steps, Siemens Energy and EEHC will pursue the development of a pilot project, comprising 100 to 200 MW of electrolyzer capacity, which will help to drive early technology deployment, establish a partner landscape, establish and test regulatory environment and certification, setup off-take relations, and define logistic concepts.
“We are proud to extend our long history of collaboration with Egypt into this emerging industry that has the capacity to significantly decarbonise industry and expand economic diversity. The development of a homegrown hydrogen ecosystem and value chain in Egypt has the potential to deliver a more sustainable and prosperous future for Egyptians,” said Christian Bruch.
Supporting Egyptian development
As an energy technology solutions provider, with a legacy of supporting Egyptian development, Siemens Energy is able to provide innovative technologies spanning renewable energy, hydrogen production, and logistics, as well as financial and technical assistance.
Siemens Energy has successfully managed to boost Egypt’s power generation capacity by over 40% by connecting 14.4 gigawatts to the Egyptian national grid. This is enough power to supply over 40 million Egyptians with reliable electricity and provide much-needed power to different industrial sectors.
“The record-breaking completion of our Megaproject in Egypt will not only transform the power landscape in Egypt, but will also serve as a blueprint for building up power infrastructure in the Middle East and all over the world,” said Joe Kaeser, Supervisory Board Chairman Siemens Energy.