Leading global investor in sustainable infrastructure Actis has signed a memorandum of understanding with the Egyptian government for green hydrogen development. The MoU will give Actis an entry point into what could be one of the largest hydrogen markets in the region. While not alone in pursuing green hydrogen, Egypt has a comparative advantage due to its renewable resources and proximity to European and Asian markets. This opportunity is an attractive proposition for Actis as it develops its hydrogen strategy and evolves the next generation of investment platforms. Hydrogen is widely used globally in commercial industry, for example in the production of ammonia for fertiliser, methanol for plastics and in oil refining. Currently almost all of the world’s hydrogen is produced using fossil fuels, with a significant amount of carbon dioxide emitted as a byproduct of the process. Green hydrogen is far superior from a sustainability perspective, because it is generated by electrolysing water using renewable electricity and has zero emissions. The production cost of green hydrogen depends on two factors – the cost of renewable power and the cost of the electrolysis equipment – and is currently more expensive than fossil fuel-based hydrogen production. However, with an expected decrease in the cost of both renewable electricity and electrolysing equipment, countries such as Egypt are seizing the opportunity to lead the way.
Leading global investor in sustainable infrastructure Actis has signed a memorandum of understanding with the Egyptian government for green hydrogen development. The MoU will give Actis an entry point into what could be one of the largest hydrogen markets in the region. While not alone in pursuing green hydrogen, Egypt has a comparative advantage due to its renewable resources and proximity to European and Asian markets. This opportunity is an attractive proposition for Actis as it develops its hydrogen strategy and evolves the next generation of investment platforms. Hydrogen is widely used globally in commercial industry, for example in the production of ammonia for fertiliser, methanol for plastics and in oil refining. Currently almost all of the world’s hydrogen is produced using fossil fuels, with a significant amount of carbon dioxide emitted as a byproduct of the process. Green hydrogen is far superior from a sustainability perspective, because it is generated by electrolysing water using renewable electricity and has zero emissions. The production cost of green hydrogen depends on two factors – the cost of renewable power and the cost of the electrolysis equipment – and is currently more expensive than fossil fuel-based hydrogen production. However, with an expected decrease in the cost of both renewable electricity and electrolysing equipment, countries such as Egypt are seizing the opportunity to lead the way.
