Green Hydrogen Industry Faces Financing Challenges Despite Growing Interest in Egypt
The Global Hydrogen Organization (GH2) has issued an urgent call for innovative financing tools and stronger demand structures to support green hydrogen investments in Egypt and the broader MENA region. The call emerged from the 2025 Cairo Regional Forum on Financing Renewables, Green Hydrogen, and Green Ammonia, organized by the GH2 International Green Hydrogen Centre of Excellence at Nile University in Giza.
Despite Egypt signing more than 30 memoranda of understanding for green hydrogen projects in recent years, few have progressed beyond feasibility studies. This challenge extends globally, with only 4% of renewable hydrogen and ammonia projects worldwide reaching final investment decisions, according to GH2 data.
The financing obstacles are substantial. Large-scale projects require enormous capital investments and implementation timelines often spanning 15 to 20 years, making them risky and costly for international banks and financial institutions. Extended timelines expose projects to shifts in global demand, trade prices, and buyer commitments that can threaten project returns.
GH2 CEO Jonas Moberg emphasized that while renewable and green projects “are coming, and their role is becoming evident to everyone,” progress remains slower than desired. He suggested that introducing carbon taxation on oil and gas could help narrow the price gap and allow green hydrogen to compete more fairly in the market.
Egypt faces specific challenges including high borrowing costs, with interest rates around 16-18% compared to 4-6% in Europe or North America. Additionally, a $5-6 billion plan to expand the transmission network has stalled, and grid usage fees remain unclear. While Egypt has allocated vast amounts of land for renewables capable of generating 180 gigawatts of clean power, the current grid can only handle about 36 gigawatts.
GH2 Deputy CEO Joe Williams highlighted opportunities for integrating green hydrogen into Egypt’s existing industrial base, particularly in steel production and fertilizers, as a path toward establishing reliable customer bases willing to pay premium prices for green-based products.
Source: egyptoil-gas.com
