Egypt offers tax rebates to boost green hydrogen output

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Egypt is offering incentives to boost local green hydrogen production as it aims to transition to a sustainable economy, finance minister Mohamed Maait said.

The incentives include tax rebates of 33 percent to 55 percent for green hydrogen production and local production of electric vehicles, Egypt Today reported.

“The total green investments in Egypt have increased from 15 percent in 2020/2019 to 30 percent in 2021/2020. We aim to reach 50 percent in the coming fiscal year,” the minister said.

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The government also seeks to increase the supply of electricity from renewable sources to 42 percent by 2035, Maait added.

Minister of electricity Mohamed Shaker stated that Egypt aims to capture between five and eight percent of the global commercial market for green hydrogen.

The strategy for producing low-carbon hydrogen is being finalised for presentation to the national hydrogen council and its approval by the supreme council of energy soon, he said.

Green hydrogen is expected to grow rapidly in the coming years as a potential major accelerator of the energy transition, Shaker said.

Egypt will issue Chinese “Panda” bonds worth $500 million shortly to support green development, Maait stated.