SHARM EL SHEIKH, 16th November, 2022 (WAM) - At COP27 in Sharm El-Sheikh, today, the EU and Egypt have taken a further step to boost their long-term cooperation on the clean energy transition by establishing a strategic partnership on renewable hydrogen and preparing the ground for a just energy transition in Egypt.
The European Commission, represented by Executive Vice-President Timmermans and Commissioner Simson, signed a bilateral Memorandum of Understanding (MoU) on a strategic partnership on renewable hydrogen with Egypt's Minister for Petroleum Tarek El Molla and Minister for Electricity and Renewable Energy Mohammed Shaker El-Markabi. They also signed a Joint Statement with the European Bank for Reconstruction and Development (EBRD) and the Egyptian Minister of International Cooperation, Rania El Mashat, announcing the Commission's contribution of up to 35 million in support of Egypt's Energy Wealth Initiative.
The MoU signature today follows the Joint Statement issued by President von der Leyen and Egyptian President Abdel Fattah el-Sisi last week at COP27. It is a key energy partnership for the EU and it will serve as a central block in building an EU-Mediterranean Renewable Hydrogen Partnership. Both parties view renewable hydrogen as a key contributor to reducing emissions and ensuring energy security, while representing an opportunity for industrial cooperation, sustainable economic growth and job creation.
The MoU will serve as a framework to support long-term conditions for the development of a renewable hydrogen industry and trade across the EU and Egypt, including infrastructure and financing. It will support the EU's ambition of reaching 20 million tonnes of renewable hydrogen consumption in 2030, as outlined in the REPowerEU plan, and therefore help reduce dependency on Russian fossil fuels. The MoU will also facilitate investment in renewables and boost the decarbonisation process in Egypt. More broadly, it will contribute to the establishment of a framework for a global rules-based market for hydrogen-based solutions, including harmonised safety and environmental standards. Its implementation will be led by an EU-Egypt Hydrogen Coordination Group and involve a Business Forum with representatives from industry, regulators, financial institutions and experts.