Egypt aims to turn its vast solar and wind resources into green hydrogen exports for Europe, but despite billions in proposed investments, major projects remain stalled due to uncertainty over buyers, pricing, and financing, an analysis highlighted by journalist Kadria Kassem from Global South Voices.
Green hydrogen, produced using renewable energy to split water, has the potential to power industries, shipping, and fertilizer production without fossil fuels. In her explanation, Kadria Kassem outlines how Egypt, with its strategic location near the Suez Canal, abundant sunlight, and industrial expertise, has attracted around $83 billion in proposed projects. However, progress has slowed as developers, banks, and buyers remain stuck in the so-called “bankability wall,” where investment depends on guaranteed buyers, while buyers wait for lower prices.
Despite Europe’s carbon regulations favoring cleaner imports, uncertainty over future demand, pricing, and policy frameworks continues to delay firm commitments. Still, early initiatives, such as the Ain Sokhna project supported by international partnerships and long-term offtake agreements, suggest the deadlock may begin to ease. According to Kassem, the stakes are global: success could create jobs in Egypt, stabilize supply chains, and reshape how clean energy is produced and traded worldwide.
This article was originally published by Global South World and is republished here with permission. View the original article.
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