Egypt approves draft law to promote green hydrogen projects

Egypt approves draft law to promote green hydrogen projects

Egypt's Cabinet on Wednesday granted approval to a draft law aimed at boosting green hydrogen projects and their related ventures.

The meeting was chaired Prime Minister Mostafa Madbouly.

The legislation, designed to incentivise environmentally friendly initiatives, applies to projects involved in the production of green hydrogen and its various by-products, provided that agreements are reached within five years of the law's implementation, according to a Arabic language press statement issued by the Cabinet.

The law encompasses a wide array of initiatives, including the establishment of green hydrogen production plants, desalination plants that allocate a portion of their production to green hydrogen, renewable energy facilities dedicating at least 95 percent of their output to green hydrogen and desalination plants, as well as projects focused on the transportation, storage, and distribution of green hydrogen. It also covers ventures engaged in manufacturing raw materials for green hydrogen plants.

Furthermore, the law extends its scope to encompass future expansions of existing projects, where "expansion" refers to any addition resulting in increased production capacity. As part of the legislation, developers are required to establish a project company and must adhere to project agreements for a maximum period of 50 years.

Under the new law, projects and their expansions will benefit