Eg yp t ’s E n e rg y O ve r v iew

THE
TEAM
CEO
MOHAMED FOUAD

GENERAL MANAGER

AYMAN RADY

RESEARCH AND ANALYSIS MANAGER

DR. MAHINAZ EL BAZ

RESEARCH AND ANALYSIS SUPERVISOR

REHAM GAMAL

ASSOCIATE RESEARCH ANALYSTS

JOLLY MONSEF
MARIAM AHMED
RESEARCH ANALYSTS
ALAA AL MASRY
NERMEEN KAMAL
STATISTICIANS
NADA ABBAS
HAGAR TAREK

MANAGING EDITOR
IHAB SHAARAWY

SENIOR EDITOR

NADER RAMADAN

CHIEF REPORTER
WAEL EL SERAG
MARKETING SPECIALIST

SHROUK ISMAIL
SENIOR MARKETING EXECUTIVE

AMIRA ESSAM
CREATIVE DIRECTOR

OMAR GHAZAL

SENIOR GRAPHIC DESIGNER

MERNA WILLIAM

MOTION DESIGNER/ VIDEO EDITOR

AMIRA HASSAN
2
TABLE
OF CONTENT

Introduction
5
Key Takeaways 6

Egypt's Resilient Energy Portfolio 8

1. Oil & Gas

2. Forward Energy Frontiers

3. Electricity

4. Nuclear

Energy Transition Trends 18

1. Economics of Energy Transition

2. Emission Reduction and Decarbonization Efforts

3. International Partnerships

4. Green Funding

5. Efficiency's Role in Energy Shift

Investments Prospects 21
1. Latest Laws Approved by Cabinet, Policies, and Incentives

2. International Companies Investments Plan

Conclusion 25

References 26

3
Eg yp t ’s E n e rg y O ve r v iew

4
INTRODUCTION
Driven by a desire to diversify Egypt's energy portfolio and combat
climate change, Egypt is undergoing a transformation in its
energy sector. Traditionally reliant on fossil fuels, the country has
embarked on an ambitious strategy to significantly increase the
share of renewable energy in the coming decades. Recognizing
the continued necessity of hydrocarbons in the near term, Egypt
is pursuing a dual approach of expanding renewable energy
deployment and decarbonizing its existing fossil fuel infrastructure,
leveraging its abundant potential across various renewable
resources.

Coming in line with global trends, the efforts of this energy

transformation to reduce emissions and achieve decarbonization
strategy, driven by aspirations for sustainable economic growth
will provide many investment opportunities, enhance regional
cooperation in the field of energy, and opportunities to combat
climate change.

Any energy transformation should be driven by ambitious goals.

With this regard, Egypt is setting its sights on achieving a significant
increase in the share of renewable energy sources within its energy
mix, with the aim of reaching 42% by 2035 in its Energy Strategy
2035.

This overview gives a snapshot of Egypt’s diversified portfolio,

highlighting different energy resources and markets. It also sheds
light on the economics of energy transition, decarbonization efforts
and their economic impact and energy efficiency major projects.
Finally, it wraps up the most significant investment incentives and
foreign stakeholders plans in Egypt.

5
Eg yp t ’s E n e rg y O ve r v iew

Egypt’s Global Energy Ranking

KEY 79 31

TAKEAWAYS
(out of 120) (out of 40)

Energy Renewable
Transition Index Energy Country
Attractiveness Index
(ETI)
(RECAI)
2023 2023
22
(out of 65)

Climate Change
Performance
Index (CCPI)

2024

1st Brownfields International Bid

Round by EGPC

Date Fields
March 2023 8

Location
The Gulf of Suez & Eastern Desert

The bid submission period has ended, and

the bids are currently undergoing evaluation.

6
 Signed Framework Agreements Renewable Energy Generation Breakdown in
31
in Green Hydrogen FY 2022/23
of 40)

ex
9 18%
Photovoltaic
60%
Hydropower
Number
Solar Energy

EGP 1.9 trillion

Investment
22%
Wind

d Energy Efficiency Implemented

Projects
Top Electricity Importers from Egypt in 2023*
Projects 247
Libya & Jordan $116.2 million
Total
Investments
$1.45 *Over the first 11 months
Value
billion

Emissions
Savings
0.9 El-Dabaa Project’s Share in Egypt's Electricity Generation
sert MMTPA Co₂

4
30%
Energy
Saved
GW/y by 2050
n.

7
Eg yp t ’s E n e rg y O ve r v iew

EGYPT'S RESILIENT ENERGY

PORTFOLIO
01 Oil & Gas
—

Market Overview

Organizational Structure Egypt’s Prominent Natural Gas Discoveries

(MoPMR) Discovery Reserves (tcf)

Zohr 30

Nooros 2.57
(Estimated 2P)

WND Project 3.5

(Estimated 2P)

Nargis 2-2.5

Atoll 1.5 tcf 31 mmbbl

of Gas of Condensates

Major Solid Infrastructure

Liquefaction Terminals Trade Pipelines

Arab Gas Pipeline Arish-Ashkelon
Location Capacity (mmt/y) (AGP)*

DLNG ELNG Starting Date 2003 2008

From Arish (Egypt)

2004 2005
4.8 7.2 To Homs (Syria) Ashkelon
Damitta Idku
Length (km) ~1,207 90

*Consist of 4 Constructed Phases

8
The oil and gas sector is one of the most dynamic
economic sectors in Egypt. Over the past years, the sector
witnessed robust growth due to the significant crude
oil and natural gas discoveries. The growth was mainly
driven by the sector's interest in boosting participation of
the international oil companies (IOCs) in various activities.
With this regard, several bid rounds were launched to
attract research, exploration and production activities in
different fields by deploying the latest technologies.
Egypt is poised to emerge as a regional leader and major
exporter in the liquified natural gas (LNG) market.
- Bid Rounds
The Ministry of Petroleum and Mineral Resources (MoPMR),
via the Egypt Upstream Gateway (EUG) platform, has
announced seven international bid rounds providing 68
blocks including 21 blocks that have been awarded and
2023 Bid Rounds Summary
2 New Bid Rounds by EGPC & Ganope
The Western
23
September Oil & Gas Desert, Eastern
2023 Explorations Desert, Gulf of
Suez, & Red Sea
Date Activity Blocks Location
- Drilled Wells
Egypt’s total drilled wells recorded 483 in fiscal year (FY)
2022/23. The development wells have the largest share of
75.8% of total drilled wells, reaching 366 wells. On the other
hand, exploratory wells recorded only 117 wells with a share
of 24.2%. These drilled wells have significantly increased oil
and gas discoveries as in FY 2022/23 to reach 78, with 59
for crude oil and 19 for natural gas in the western desert,
Eastern Desert, Gulf of Suez, Mediterranean Sea, Nile Delta,
In December 2018, the country succeeded in achieving self-
sufficiency from natural gas and LNG after the discovery of
the supergiant Zohr gas field in the Mediterranean in 2015,
which started its first production in late 2017. Egypt turned
from being an LNG importer during the period from 2015
to 2017 to a net LNG exporter in 2019.
Additionally, Egypt enjoys a wide strong oil and gas
infrastructure that supports its position regionally. The
country has the advantage of possessing two of the
largest LNG terminals as well as the exporting natural gas
pipelines which connect it with the neighboring countries.
23 blocks that are currently running. Two bid rounds have
been launched in 2022 and three in 2023 including the
first brownfields bid round.
1st Brownfields International Bid Round by EGPC
The Gulf
8
March
of Suez &
2023 Eastern Desert
Date Fields Location
The bid submission period has ended, and the bids are
currently undergoing evaluation.
and Sinai, according to the Egyptian General Petroleum
Corporation (EGPC).
In July 2023, Egypt announced that it started implementing
an ambitious program in cooperation with a number of
IOCs to drill 35 new natural gas exploration wells in the
Mediterranean Sea and the Nile Delta within two years
from 2023 until July 2025.
9
Eg yp t ’s E n e rg y O ve r v iew
- Drilled Rigs
The total drilled rigs in Egypt in FY 2022/23 reached 136
rigs. Onshore rigs held the largest share of 86.8%, reaching
118 rigs. Of which, 59 rigs were active, while the remaining
59 were waiting on orders (W/O) or standby rigs.
- Petroleum Production and Consumption
Despite the global challenges, Egypt’s petroleum
production maintained its levels in 2023. The total
production reached 74 million tons (mmt). The production
of crude oil and condensates increased by 2% in 2023, due
to putting some new wells on production such as the
North Geisum (GNN) Field in the Gulf of Suez.
Production & Consumption in 2023
Production (mmt)
Crude Oil & Condensates 28
Natural Gas 45 Liquified Petroleum
Gas (LPG) 1 34.5
- Petroleum Exports
The total crude oil export volume was 3.98 mmt during
the first 11 months of 2023. European countries dominated
crude oil imports from Egypt as Italy and Greece are
the largest importing crude oil countries with a share of
30.5% and 34% of total imported volume respectively. On
the other hand, the Asian countries, India and China are
the two largest importers representing 32.8% of the total
imported volume, according to the Central Agency for
Public Mobilization and Statistics (CAPMAS).
02 Forward Energy Frontiers
—
A. Renewables Market
Egypt showcases a rapidly expanding renewable energy
industry It is endowed with considerable untapped
potential to further enhance the sector, given its sunny
weather and high wind speeds. Egypt generated about
20% from Africa’s total renewable energy production in
2022. Egypt also ranked 2nd with regard to its contribution
10
On the other hand, offshore rigs represented only 15.3%
of total drilled rigs with 18 rigs recorded. Among which,
13 were active rigs and 5 were W/O rigs, according to the
EGPC.
The oil and gas sector managed to obtain full stability
in the local market in 2023, by securing the local needs
of citizens for petroleum products and natural gas. The
total domestic consumption reached 80.8 mmt which
increased by 0.3% from the previous year. Petroleum
products consumption increased by more than 2% in 2023
from 2022. However, Natural Gas increased by only 1%,
according to the MoPMR.
Consumption (mmt)
Petroleum Products Natural Gas
46.4
On the other side, the total LNG exported volume was 3.6
mmt, in 2023. The European market became more reliant
on LNG imports from Egypt, especially after the Russian-
Ukrainian war. Five European countries are the most
importing LNG countries from Egypt representing 54%
of total imported volume. Moreover, for Asian countries,
South Korea and China are the largest two importers
representing 14% of the total importing countries,
explained by the Organization of Arab Petroleum
Exporting Countries (OAPEC).
to solar energy production in Africa, which amounted
to about 27% of total solar energy production in 2022,
according to the Energy Institute Statistical Review of
World Energy. Furthermore, green hydrogen has the
potential to broaden the market for Egypt's emerging
sustainable energy sector.
 Market Overview

Renewables and Electricity Markets’ Organizational Structure

Ministry of Electricity and Renewable

Energy (MoEE) Prime Minister

The Egyptian Nuclear

New & Renewable Nuclear Materials and Radiological
Energy Authority Authority (NMA) Regulatory Authority
(NREA) (ENRRA)
Egyptian Atomic
Hydro Power Projects Energy Authority
Execution Authority (EAEA)
(HPPEA)

Egyptian Electric
Nuclear Power Plants Utility and Consumer
Authority (NPPA) Protection Regulatory
Agency (EgyptERA)

The sector has two holding companies with about 17 subsidiaries

Generation Sources Mega Projects

Egypt has a wide array of untapped renewable resources,
Hydropower which makes it an ideal place for renewable energy projects.

Hydropower is Egypt's largest renewable energy source, which

mainly comes from the Aswan High Dam and the Aswan Reservoir Wind Projects
Dams across the Nile River.

Aswan High Dam has a hydropower capacity approaching 2,100

Zaafarana 545
MegaWatt (MW).
Jabal Al-Zayt 580
Wind Power Gulf of Suez
Farm 250
Egypt benefits from a tremendous wind resource, particularly in Capacity
the Gulf of Suez, where the average wind speeds exceed 10 meter/ (MW)
second.

Solar Projects
Photovoltaic Solar Energy
El-kureimat
Egypt has an average level of solar radiation between 2,000 to 3,200
kWh/m²/y. Power Plant 140

Egypt currently holds the 4th position globally in terms of having the Benban Park 2,000
largest solar energy stations after the successful implementation of
Kom Ombo
the Benban Solar Park.
Solar Park
200
Capacity
(MW)

- Renewable Energy Production in FY 2022/23

Egypt showcases a rapidly expanding renewable energy Renewables Production

market. Given its considerable potential for further
development, Egypt takes the opportunity to enhance
its economic value and expedite its transition towards
2021/22 24.3
sustainability. Egypt's production of renewable energy has
2022/23 26
increased by approximately 7% from FY 2021/22 to FY 2022/23.
Egypt's installed renewable energy capacities in FY 2022/23
Volume
approached 6.3 gigawatts (GW), according to the NREA. (TWh)

11
Eg yp t ’s E n e rg y O ve r v iew

Production per Source Installed Capacities per Sector

Hydropower continued to represent a big share of Egypt's
renewable energy production, reaching about 15 terawatt
hour (TWh) in FY 2022/23, from a total generated power of
25.6 TWh. Meanwhile, the generated wind reached 5.6 TWh.
Egypt is also considered a “sun belt” country, the sun shines
9-11 hours a day from north to south, reflecting the massive
solar potential to generate renewable energy. It amounted
to 4.5 TWh during the above-mentioned year, according to
the Solar Atlas of Egypt.
Egypt's total hydropower installed capacities reached
2,832 MW in FY 2022/23, concentrated in the public sector,
meanwhile, wind power installed capacities approached
1,632 MW, distributed between both private and public
sectors, according to the NREA. Based on Egypt's current
policies and plans, it is expected that about 3.6 GW of
installed wind capacities will be added in Egypt by 2027,
according to the Global Wind Energy Council (GWEC)
Global Wind Report 2023.

Renewable Energy Generation Breakdown Private Sector Capacities (MW)

% Photovoltaic Solar
Energy
1,465

Wind 512

% Public Sector Capacities (MW)

%
Hydropower 2,832

Wind 1,120

- Major Renewable Energy Projects in 2023

Egypt keeps pace with developments in renewable Additionally, there is a continuous attempt to recognize the
energy sources through its policies and incentives on significance of renewable energy as a major contributor
implementing private sector projects and efforts to attract to future green energy projects and to explore potential
foreign direct investment (FDI). areas for upcoming projects.

Signing Several Land Allocation Contracts to Establish Wind Projects in West Sohag

Project’s Investment Emission Natural Gas

Production Date Partners Reduction (mmt)
Cost ($ billion) Saved Costs ($ billion)

MoEE, NREA,
10 GW ACWA Power - 2.4 6.5

5 GW/y July
NREA, Scatec
5 - -
2023
Masdar, Infinity
10 GW* Power, Hassan
Allam +10 23.8 5

3 GW August NREA, Orascom

Construction
2023 PLC, ENGIE,
and Toyota - 6.5 -
Tsusho

Reducing
*One of the Largest Wind Farm
47,790 GW/h 4 Years
Projects in the World
Targeted Annual Production Implementation Period
9%
of Egypt's Carbon Emissions

12
Signed MoU to Establish a Solar Energy Project Under-construction Projects to Generate Electricity
from Renewables*
Date Capacity

December 2023 10 GW

Partners
NREA, EEHC, and China Electric Power Equipment
& Technology Co.

Production Target Reduces Emissions

24,784 GW/h 14 mmt of co2 *Announced in October 2023

B. Green Fuel

- Green Fuel Markable Milestones

Egypt’s 1st Integrated Green Hydrogen Facility Egypt Received the 1st Green Fuel Container
in Africa Ship in Africa and the Middle East

Date Capacity
Announce Date August 2023
November 2022 100 MW
Port East Port Said
Partners

Fertiglobe, Scatec, Orascom, and TSFE Taking-off Point Asia

Production Destination Europe

15,000 tons As a Feedstock to

Produce 90,000 tons
Green Hydrogen of Green Ammonia Supplied with 500 t of Green Methanol

Egypt Exported the World’s 1st Green Ammonia Shipment

November Project's
Date
2023
Company Fertiglobe SCZONE
Location

Destination Tuticorin Chemicals and Fertilizers Using Produced hydrogen in the experimental
Limited (TFL) in India electrolyzer of the company

Project Production Capacity (t/y) 15,000 To

Produce
90,000
Green Hydrogen Green Ammonia

13
Eg yp t ’s E n e rg y O ve r v iew

- Green Hydrogen

Green hydrogen is poised to revolutionize the global Cooperation & Investments in Green Hydrogen
energy system in the near future, as it displaces carbon

~23
dioxide-emitting sources in high-polluting sectors like Signed MoUs
heavy industries, transportation, and aviation.

Egypt is actively prioritizing the production of green Framework Agreements

hydrogen as part of its efforts to diversify the country's
Signed In-progress
energy mix. In partnership with international companies,
it is embarking on the implementation of pilot projects
aimed at producing and exporting green hydrogen and
Number 9 13
green ammonia. Investment
(EGP trillion) 1.9 2.5
Location SCZONE

Green Hydrogen Production

Targeted Annual Production
Egypt is positioning itself to emerge as a global hub for
green hydrogen production. It has ambitious plans to be
a regional center for green hydrogen production by 2026, 3.2 mmt Rising
to 9.2 mmt
and a global hub by 2030. By 2040

Contribution to the Global Market by 2040

5.6 mmt
Green Hydrogen & Green Ammonia Projects

India, Egypt Signed MoU to Build a Green Hydrogen Plant

TSFE, SCZONE, NREA, ReNEW Power 2 Phases Production

Partners

220,000
Date Investment Cost
t
July 2022 $8 billion Green Hydrogen

Location

Sokhna Integrated Zone Green Ammonia

1.1 mmt

Egyptian-Saudi Deal to Develop Green Hydrogen Project

TSFE, SCZONE, NREA, EETC, ACWA

Power Date December 2023
Partners

Project’s 1st Phase Project’s 2nd Phase

600,000 t/y + $4 billion Powered by 2 mmt/y

of Green Ammonia Solar and Wind Plants of Green Ammonia
Investment
Capacity Potential Capacity

14
New Green Ammonia Project at the Gulf of Suez Egyptian-Chinese Framework Agreement to
Set up a Green Hydrogen Plant

Establisher Signing Date Partners

October 2023 China Energy, SCZONE
Benchmark Power International (BPI)
Area Investment

500,000 m2 $6.75 billion

Production (t/d) Annual Production

183 1,000 210,000 t 1.2 mmt

Green Hydrogen Green Ammonia Green Hydrogen Green Ammonia

03 Electricity
—
Egypt is among the largest electricity producers and International Finance Corporation (IFC). Electricity
suppliers in Africa, the country is expected to overtake generation depends on oil, natural gas, hydroelectric, and
South Africa in the next decade to become the largest renewables, yet Egypt massively relies on natural gas.
electricity market in the continent, according to the

- Total Production

Over the first ten months of 2023, Egypt’s total electricity with a 2% increase compared to the same period in 2022,
production reached 188.3 megawatts per hour (MW/h) according to the CAPMAS.

- Total Consumption

In Egypt, there is a wide range of sectors that rely on
electricity for their production. In the first ten months in
2023, the total electricity consumption reached 145.7 TWh,
possessing about 77.3% from total electricity generated
during the same period, noting that the remaining
electricity production was directed for exports. Households
are the largest electricity consumers, followed by the
industry sector, then the public utilities and governmental
agencies sector, according to the CAPMAS.

Electricity Consumption per Sector over the First Ten Months in 2023

Public Utilities &

Households Industry Governmental Agencies Others
Share (%)

Capacity (GW/h) 37.3 54.3 27.11 39.5 13.25 19.3 22.4 32.6

15
Eg yp t ’s E n e rg y O ve r v iew

- Electrical Interconnection with Neighboring Countries

Egypt seeks to be a regional and international center for the Egypt-Sudan Interconnection
exchange of electrical energy between the Arab countries,
Africa, Asia, and Europe through electrical interconnection
projects by the year 2035, through several major electrical
Electricity Flow Starting Date 2020
interconnection projects.
Total Capacity 300 MW
Since the 2000s, Egypt has started electrical interconnection
lines with several neighboring countries. For instance, Egypt
has been linked to Jordan since 2000 through an electrical
1st Phase 80 MW
interconnection project.
Line Length 176 Km
In 2002, an electrical interconnection project between
Egypt and Libya was also established, through which Egypt From Toshka 2 substation in Egypt
exported electricity to Libya with a capacity of approximately
240 MW.
To Arqin substation in Sudan

In 2021, an electrical interconnection contract was signed In 2023, an electrical interconnection contract was signed
between Egypt, Cyprus, and Greece, where they are between Egypt and Saudi Arabia, which will connect about
interested in completing the project which is being carried 3 GW, representing a significant connection between two of
out. the largest electrical power networks in the region.

Egypt-Cyprus-Greek Interconnection Egypt-Saudi Interconnection

36-52 $1.8 billion

Implementation Period Investments
(Months)

3 1,350 Km
Stations Length of Antenna
Cable

- Exports
Electricity Exports
Over the first eleven months of 2023, the total value of Value ($ million)
the electricity exports reached $116.2 million. The main
destination of electricity exports from Egypt is Libya, Libya Jordan
followed by Jordan, according to the CAPMAS.

92.2 23.99

In October 2023, an electricity export MoU was signed between the EETC and Belgium’s Jan De Nul Company, to export
electricity from renewable energy from Egypt to Europe via the Mediterranean Sea.

16
04 Nuclear
—
Egypt is actively endeavoring to incorporate nuclear energy Under the terms of the project’s agreement, the Russian
into its diversified energy portfolio, driven by the country's entity is responsible for the construction of the El-Dabaa
economic expansion which has led to a marked increase in Nuclear Power Plant, supplying the nuclear fuel throughout
Energy demand, growing at an annual rate of 4-7% according its operational lifespan, aiding in staff training for the Egyptian
to the World Nuclear Association. The strategic aim of counterpart, and offering operational and maintenance
diversifying the energy sources within the electricity sector support during the plant's initial decade of operation.
is to reduce reliance on fossil fuels and transition towards a
sustainable, green economy.
El-Dabaa Nuclear Power Plant (NPP) in Egypt
Discussions surrounding the integration of nuclear energy
into Egypt's energy landscape commenced in 1983. El- 4 1,200 MW
Dabaa site on the Mediterranean coast was selected to host Power Units Capacity per Unit
the plant. In October 2013 El-Dabaa plans were reactivated.
This project is undertaken by Rosatom, a Russian state III+ VVER-1200 $28.75 billion 60-80 y
corporation. The project is expected to generate about 10% of Reactors Type Total Investments Operating Life
Egypt's electricity by 2027, and 30% by 2050 according to the
National Investment Bank (NIB).

Project’s Milestones

November 2015 December 2017

Inter-Governmental The EPC, Nuclear Fuel
Agreement (IGA) & Supply, Spent Nuclear Fuel
Finance was Signed. Treatment, and Operation
Support & Maintenance
contracts became effective.

December 2014 December 2016 April 2019

Egypt completed the The engineering, The Egyptian NPPA
project’s preparatory procurement, and received a site approval
work and launched construction (EPC) contract permit for El-Dabaa site
El-Dabaa NPP Project. was signed between Egypt from ENRRA.
and Rosatom.

The construction phase for the plant's four units spanned Concrete Pouring for all Four Units
from early 2022 to 2024. The commencement of inaugural
tests and the trial operation of the first reactor at the Dabaa
peaceful nuclear plant are scheduled for 2028.
1 2
July 2022 November 2022

3 4
May 2023 January 2024

17
Eg yp t ’s E n e rg y O ve r v iew

ENERGY
TRANSITION TRENDS
01 Economics of Energy Transition
—
Recognizing both the global energy transition and its own development needs, Egypt is undergoing a strategic shift
from conventional fossil fuels towards cleaner, renewable sources. This ambitious transformation aims to address growing
energy demands, promote job creation, and ensure long-term environmental sustainability, shaping a prosperous future
for the nation.

GDP (2021-2050) Energy Sector Jobs Creation Target by 2050

Hydrogen
Average Growth Value
Energy Efficiency
5.2%
5.5% $1.1 trillion 16.1%
Sectors’ Share in GDP (%)
Fossil Fuel
20
2020
Energy
8 10.9% Renewables
Renewables

2030
25 42.2%
12 Vehicle Infrastructure

1.6%

Welfare

Country’s GHG Emissions (%)

Year 2019 2050

Energy Sector 74.1 75.6

02 Emission Reduction and Decarbonization Efforts

—
Although Egypt’s contribution to global greenhouse gas (GHG) emissions is very small, it demonstrates awareness to
reduce its emissions and has adopted an ambitious plan within the international framework, according to the United
Nations Development Programme (UNDP).

The Egyptian government, with the relevant authorities, put a great effort towards reducing emissions by establishing
low-carbon infrastructure projects. Egypt’s oil and gas sector has already achieved an emissions reduction of 5.4 million
tons per year (mmt/y) of CO2 equivalent, and ongoing projects are projected to achieve an additional 1.4 mmt/y, with the
potential for a total cumulative reduction of 6.8 mmt/y, announced by the MoPMR in June 2023.

18
A. Ministries’ Initiatives
The Ministry of Petroleum and Mineral Resources
(MoPMR)
The MoPMR set a plan and strategy for supporting
decarbonization and energy transition which are based on
six main pillars, focusing on promoting the use of natural gas,
renewables, and hydrogen.
The Ministry of Environment (MoE)
The MoE launched the national network for monitoring
industrial emissions from factories at the end of 1988. The
National Network for Monitoring Industrial Emissions of the
Egyptian Environmental Affairs Agency (EEAA) is one of the
key tools for collecting data about the quality and quantity of
emissions to control industrial pollution.

B. Emissions Reduction per Sector

Egypt has updated the Nationally Determined Contributions the electricity sector, 65% in the oil and gas sector, and 7% in
(NDC) Report 2030 in June 2023. The report outlines Egypt's the transportation sector by 2030.
commitment to mainly reducing emissions by 37% in

Major Sector’s Targets by 2030

Oil & Gas Electricity Transport

Recovery & utilization of associated gasses
generated from the crude oil fields.
Low investment energy efficiency
measures to reduce 5% of the
sector’s energy consumption.
Increase production of green
petrochemicals & alternative green fuels.
Maximize energy production
from local resources.
Improve the energy efficiency
of electricity generation.
Improve & upgrade the transmission
& distribution networks.
Transform public buses to
operate on lower carbon-intensive
fuels such as natural gas.
Greening of the civil aviation sector by
introducing 2% biofuels to airplanes.

03 International Partnerships
—
Egypt collaborates with major international institutions and key financial institutions, involving relevant ministries and
authorities to support emissions reduction efforts.

Most Prominent International Cooperating Institutions

19
Eg yp t ’s E n e rg y O ve r v iew

04 Green Funding
—
Egypt is emerging as a regional leader in the green economy transition, implementing a comprehensive action plan with
successive steps. The plan could not be achieved without implementing environmentally friendly projects and the use of new
technologies.

In this context, in order to achieve these projects, the total development financing for various sectors amounted to $28.5 billion
during the period from 2020 to 2023 from multilateral and bilateral development partners, where $2.44 billion was intended
for electricity, renewable energy, petroleum, and environment sectors, as stated by the Ministry of International Cooperation.

A. Green Bonds Green Bonds Issuance

The Ministry of Finance launched the first sovereign green
bond offering in the Middle East and North Africa (MENA)
region in September 2020. These bonds support energy Value $759 million
efficiency, renewables projects, or any other projects that
meet the sustainability requirement.
Maturity
Period
5 Years

B. Voluntary Carbon Market

The Egyptian government launched Africa’s first voluntary
Rate 5.25%
carbon certificates market for issuing and trading at
COP27 in November 2022. The voluntary carbon markets
support the companies in recovering part of the investment
C. Sustainable Finance
Sustainable finance is key to achieving sustainable
spending for reducing carbon emissions. The launching of
development goals (SDGs) through introducing new
the new voluntary market confirmed Egypt’s participation
banking products and services in a manner that integrates
in the international goal of carbon neutrality.
Environment, Society, and Governance elements (ESG)
within banks financing, lending, and investment activities.
In a landmark move, the Financial Supervisory Authority
(FSA) registered three entities for the first time in the
The Central Bank of Egypt (CBE) issued the guiding
Egyptian market for detection and verification of carbon
principles for sustainable finance in July 2021 to set the
emissions reduction projects in February 2024: the Center
general framework for it. The CBE also issued several
of Organic Agriculture in Egypt (COAE), TUV NORD Egypt
initiatives aimed at promoting sustainable finance, with
Company, and TUV NORD Cert Company. This follows the
a particular focus on environmental sectors such as
FSA’s establishment of the Carbon Emissions Reduction
renewable energy.
Supervisory and Oversight Committee under Resolutions
57 and 58 of 2023.

05 Efficiency's Role in Energy Shift

—
Recognizing energy as a pivotal force for development,
Egypt's commitment to improving energy efficiency
is a critical component of its comprehensive strategy
addressing energy challenges, mitigating GHG emissions,
and transitioning towards a more sustainable and diverse
energy portfolio.
The oil and gas sector has evaluated the progress in
enhancing energy efficiency and adopted an action plan
that includes goals for improving energy efficiency over
short and long-term periods.
With this regard, the sector cooperated with international
institutions and banks to boost energy efficiency efforts. It
prepared a methodology of “Technical Review of Energy
Efficiency” in cooperation with the European Union (EU).
From its side, the European Bank for Reconstruction and
Development (EBRD) provided a fund of $390 million
to improve energy efficiency at the Suez Oil Processing
Company (SOPC) and the Egyptian Natural Gas Company
(GASCO).

20
Implemented Energy Efficiency Projects Annual Energy Saving

Projects Total Investments Emissions Savings Energy SavedValue Saved

Value Saved Through Through

$140 million/y
$140 million/y ApplyingApplying No/Low-Cost
No/Low-Cost
EfficiencyEfficiency
Energy Energy
Measure Measure
247 $1.45 billion 1.2 MMTPA Co2 4 GW/y

INVESTMENTS
PROSPECTS

01 International Companies Investments Plan

—
The investments of international companies in the first quarter of FY 2023/24 approached $1.5 billion in the oil and gas
sector, yet the investments are planned to reach $8 billion in the year, stated by the Minister of Petroleum and Mineral
Resources Tarek El Molla to the Media on the sidelines of the Abu Dhabi International Progressive Energy Congress
(ADIPEC) 2023 conference and exhibition.

Investments Investments Investments

$1.4 billion $3.5 billion $7.7 billion

Period Areas Aim

2024 Research, exploration,

and development
Enhance its successful
projects in Egypt

Period Period
2024, 2025 and 2026 2024, 2025, 2026
and 2027

21
Eg yp t ’s E n e rg y O ve r v iew

02 Latest Laws Approved by Cabinet, Policies, and Incentives

—
Egypt is a hub for energy trading and investments, with potential and opportunities in different resources. The Egyptian
government continues to make progress on economic reforms in order to attract investments and encourage business
owners to pump new investments. Moreover, Egypt is keen to develop green hydrogen and supports its projects. In this
regard, the Egyptian Cabinet held different meetings to set decisions and to provide more incentives for the industry
stakeholders.

January 1, July 27, August 30, September 13,

2023 2023 2023 2023

House of Representatives
approved the draft law
on incentives for green
hydrogen production
projects and its derivatives.
The law provides cash
investment incentive called
the “Green Hydrogen
Incentive” whose value
ranges between 33-55% of
the value of the tax paid.
The value added taxes to
be 0% for equipment, tools,
machines, raw materials,
exports of green hydrogen
projects, and transportation,
except for passenger cars.
The Cabinet approved
three oil and gas
commitment agreements
for the Egyptian Natural Gas
Holding Company (EGAS),
the EGPC, and a number of
international companies.
The agreement includes
the drilling of 13 wells, with
investments amounting to
$319.5 million.
The Cabinet approved
the establishment of the
National Council for Green
Hydrogen, holding its first
meeting in September
2023.
The council will function
as a platform to assess
and advocate for green
hydrogen projects, ensuring
a streamlined and efficient
process.
A digital platform was
launched for environment
and climate investments in
Egypt.
The platform will be a
gateway for businessmen,
developers, financiers,
investors as well as
supporting institutions.
This will provide preliminary
economic feasibility studies
and promising investment
opportunities.

22
September 20,
2023
The cabinet approved granting a golden
license to the Egyptian Natural Gas
Company (GASCO), with an investment
will reach about $380 million.
This will increase the capacity of the
Western Desert Gas Complex with a
fourth production line with a capacity
of 600 mmcf/d.
The capacity increase will boost the
production of natural gas derivatives,
provide the needs of petrochemical
plants with raw materials.
January 27,
2024
President Abdel Fattah El-Sisi approved
the draft law on incentives for green
hydrogen production projects and its
derivatives.
The accouterment of this law applies for
projects whose agreements are done
within 5 years from the date of the law’s
enforcement.
February 8,
2024
The Council of Ministers approved two
projects to modify two valid petroleum
commitment agreements between the
EGPC and a number of international
and national companies.
The two projects aim to search and
exploit oil in the deep offshore western
delta in the Mediterranean Sea and
northwest of October in the Gulf of
Suez, with a minimum drilling of 8
wells, non-refundable grants worth $1
million and investments amounted to
about $232 million.
23
Eg yp t ’s E n e rg y O ve r v iew

24
CONCLUSION
Egypt has a promising mix of renewable energy, green hydrogen,
and hydrocarbon resources. Seizing this opportunity, Egypt has
devoted great attention to the utilization of new and renewable
energy sources represented in solar energy, wind energy, and
nuclear energy to drive its energy mix toward a greener future. This
commitment not only addresses climate change but also aligns
with the decarbonization objectives of global partners.

Egypt's emergence as a regional energy hub presents new

investment opportunities, particularly in solar and wind energies as
well as green fuel projects. Successful renewable energy projects in
Egypt do not only showcase the sector's potential and capacity but
also provide valuable insights into market dynamics.

By capitalizing on its strengths and collaborating with international

partners, Egypt can drive sustainable development, enhance
regional cooperation, and contribute to a cleaner and more
prosperous future for all.

25
Eg yp t ’s E n e rg y O ve r v iew

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