Germany and Egypt strengthen partnership on green hydrogen

Governments of the two countries sign declarations of intent for closer cooperation on the establishment of a climate-neutral energy supply

Joint press release of the Ministry for Economic Affairs and Climate Action (BMWK) and the Ministry for Economic Cooperation and Development (BMZ)

Germany is helping Egypt to build up a sustainable green hydrogen value chain. In a virtual signing ceremony, Robert Habeck, Federal Minister for Economic Affairs and Climate Action (BMWK), and Jochen Flasbarth, State Secretary in the Federal Ministry for Economic Cooperation and Development (BMZ), signed two declarations of intent with ministers from Egypt.

Their aim is to intensify cooperation with Egypt on the production of green hydrogen and trade in liquefied natural gas (LNG). Signatories on the Egyptian side were Tarek El Molla, Minister of Petroleum & Mineral Resources, Dr Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy, and Dr Rania Al-Mashat, Minister of International Cooperation.

By signing the declarations, the two countries underscore their ambitions to combat climate change and to build up a secure and affordable supply of zero-carbon, climate-friendly energy sources – working from the targets in the Paris climate accord.

Said Federal Minister Robert Habeck: “Our energy partnership is sending out a clear signal in the run-up to COP27: we are helping Egypt to place its own energy supply on a new footing and to speed up the shift from fossil to climate-friendly energy sources. Together, we can help to progress the global energy transition and to build up cross-border, climate-neutral energy networks largely based on green hydrogen. In the short term, the more intensive trade in Egyptian LNG will help us to further diversify our energy imports and to become more independent of Russian gas.”

State Secretary Jochen Flasbarth commented: “As the world steers towards a renewable energy system, it is important for emerging and developing economies to be on board from the outset. Egypt is an important partner country of German development policy and offers outstanding conditions for the climate-friendly energy supply of the future. The new global green hydrogen economy must be designed in a way that also benefits emerging and developing economies. We want to make significant progress together on this journey.”

Today’s signing is the start of a structured dialogue with the private sector and other actors to promote the mutual exchange of knowledge and the transfer of technological expertise, to harmonise the regulatory framework and to clarify financing issues.

In view of the current energy crisis, a second declaration was signed to enhance governmental and private sector cooperation between both countries on the trade in energy, with a particular focus on deliveries of LNG.

Besides developing trade relations and support for infrastructure projects, the agreement envisages closer cooperation between policy-makers, business representatives and scientists. A central point is that infrastructure projects and joint investment must be designed in a manner which enables fossil natural gas to be replaced by green hydrogen as quickly as possible, so that they can contribute in the short to medium term to a climate-neutral energy supply based increasingly on hydrogen and its upstream products. This means that, going forward, Germany will be able to cover some of its need for green hydrogen from Egyptian exports.

Specifically, the Joint Declaration of Intent provides for the following:

• promotion of the mutual exchange of knowledge and technological expertise, and of the use of German technology in the implementation and localisation of new technologies for startup projects in Egypt with a focus on technologies in the field of green hydrogen;
• the realisation of specific projects in the context of the production, processing, use and transport of green hydrogen;
• the promotion of the establishment of a green hydrogen sector;
• the promotion of joint investment, research and implementation projects in the context of hydrogen and its processing, transport and use, and support for the implementation of such projects.