Green Hydrogen In Egypt

Sustainability; The Future For Oil And Gas Industry

When it comes to sustainability, it might seem as a contradicting area in relation to  the oil, gas and energy sector, however they go hand in hand; especially in the past few years with the continually declining environmental conditions.

In this article , sustainability is tackled along with its relation to green hydrogen as a sustainable resource, its uses and finally Egypt’s latest deal with Siemens concerning green hydrogen production in full detail.

 Since oil and gas industries are a vital part of the energy processes all around the world and will continue to be for the foreseeable future, coming up with sustainable strategies that tackle new more environmentally friendly solutions and opportunities whilst keeping operations and business on track is a must. The reasons are innumerable, not only will it be required to gain operating licenses in the future, it will also achieve the right CSR equation and keep stakeholders on the right track. Not to mention the most important reason of all, the better contribution to health, safety and the  environment in general.

What Is Green Hydrogen and How Is It Obtained?

Even though it is intangible, green hydrogen is surely sparking a lot of interest among big oil and gas companies around the globe. Green hydrogen is a more abundant cleaner source of energy, compared to other resources, that aims to almost eliminate carbon emissions through its zero emission production process. For elaboration, the resources needed to produce it are water (being molecularly mostly hydrogen), an electrolyzer and a plentiful amount of renewable electricity, hence producing hydrogen without any carbon dioxide emission. The viability of green hydrogen is questioned at times due to the high production costs associated with electroayzers, especially larger ones used in this process, however these doubts will no longer be in the way as renewable processes and decarobinsation are being made cheaper, easier and more accessible. As the International Energy Agency highlights, this method can save up to 830 million tonnes of carbon dioxide annually. 

Uses Of Green Hydrogen In Egypt and Internationally

Green hydrogen can simply be used as an industrial hydrogen replacement, since industrial hydrogen gets made with natural gas, which in the US alone equals about 10 million metric  tons annually. Consequently, green hydrogen can be used in various ways. It can be an addition to natural gas, both are then burned for thermal power or for district heating plants. Additionally, another use for green hydrogen is to act as a precursor for other energy carriers such as synthetic hydrocarbons, or to power fuel cells in ships and cars as an example, diversifying its uses even more into domestic, commercial, mobility and industrial purposes.

To specify, concerning mobility, green hydrogen will be crucial in mining vehicles, trains, aircrafts as well as buses and cars too. By 2030, Hyundai will have manufactured 500,000 hydrogen vehicles, not to mention that Paris has already begun developing a taxi fleet that runs on hydrogen. As for industrial purposes, green hydrogen has been recently integrated in the chemical industry for ammonia and fertilizer production, as well as its use in the petrochemical industry for production of petroleum products. In addition, with the constant pressure on the steel industry to become less environmentally aggressive, the use of green hydrogen has been an opportunity to make the industry more environmentally friendly. Finally, domestic use is already in motion with multiple green hydrogen networks being built to provide electricity and heat to households as a replacement to gas.

Siemens and Egypt Join Forces For Green Hydrogen Development

German industrial giant, Siemens, has done some major deals in recent years in Egypt, with their most recent one being an agreement on mutual effort between both Siemens Energy and the Egyptian government to understand and develop green hydrogen and translate it into real life projects soon. Due to previous successful projects under Siemens’ hands in Egypt, such as the giant power plants that were built in record time, this opportunity was deemed promising not only for Egypt’s future, but the whole Middle East as well.  Christian Bruch, CEO and president of Siemens, signed a memorandum of understanding (MoU), to further explore, understand, foster and develop green hydrogen production facilities and projects in Egypt, along with Gaber El-Dessouki, Chairman of  the board of directors of the Egyptian Electricity Holding Company (EEHC), witnessed by Mostafa Madbouli, Egypt’s prime minister, and Mohamed Shaker, minister of electricity and renewable energy. 

After the MoU, consultations and negotiations should be held for possibilities and further research on developing green hydrogen production projects from renewable electricity in Egypt. It is also part of efforts done by the Egyptian government in attempt to raise the renewable energy share in the energy mix as well as implement a strategy that allows for expansion in the green energy fields in Egypt. Initial steps taken will include Siemens Energy and EEHC pursuing the development of a pilot project, 100 to 200 MW of electrolyzer capacity, which will not only establish a partner landscape but will also help define the  logistic scope of the project and drive early technology deployment. Surely a local hydrogen production system using renewable resources in Egypt will have a great impact on Egypt and its future.

Green Hydrogen In Egypt

 All in all, green hydrogen will be a part of the future. Even though it is not the most accessible at the moment, with the help of projects mentioned above and with its diverse uses (domestic, mobility, commercial and industrial) it will undoubtedly become cheaper and more attainable in the near future.

In addition to having a strong industrial base, developed infrastructure and access to global markets, Egypt also has the renewable energy resources mix that is both abundant and rich, making it a strong foundation and a solid candidate for development of robust green hydrogen. With Siemens Energy being one of the leading companies in the industry and a legacy of successful projects previously done in Egypt, the suitable and most innovative technologies will be provided for the optimal hydrogen production process, financial and operational assistance and the required technical expertise.

At Tam Oilfield Services, we know where the future is headed and we realize the importance of maintaining our environment with minimal harm to it, which is why we strive to always partner with entities who share the same vision, such as Baker Hughes[1] , for a prosperous sustainable future.

For more information on Baker Hughes and its sustainability efforts, visit : https://investors.bakerhughes.com/news-releases/news-release-details/baker-hughes-invests-bio-methanation-technology-company

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