Egypt’s House of Representatives on Tuesday (January 2) approved a draft bill to provide incentives for green hydrogen production.
Aimed to bolster the north African country’s hydrogen industry, the draft law submitted by the government provides incentives for green hydrogen projects and producing companies during project implementation.
While direct details of the bill were not announced by the government on Tuesday, the Egyptian Cabinet in May 2023 approved a draft with incentives including a cash investment equivalent to 33-55% of tax paid on revenues generated by a green hydrogen project.
Additionally, equipment and materials would be exempt from VAT under the Cabinet draft, as well as offering wavers on the taxes, contracts and land registration fees.
Speaker Hanafy el Debaly © Egyptian State Information Service
During the Representatives’ approval, House Speaker, Hanafy el Debaly, said the development of green hydrogen projects aims to promote the participation of the private sector.
In November (2023), Egypt approved its national strategy for green hydrogen, aiming to “reach” 5-8% of the global hydrogen market.
Read more: Egypt approves national green hydrogen strategy
Egypt’s green hydrogen potential has been well documents in recent years. Having been the host nation of COP27 in 2022, the nation attracted the attention of multiple big players in the build-up and months after the conference.
Speaker el Debaly praised Egyptian President, Abel Fattah El Sisi’s directives during COP27 towards localising green hydrogen and derivatives projects.
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