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Egypt Private Sector to Produce Green Hydrogen

Green hydrogen is a clean fuel that will have an advanced position in energy production in the future. (Asharq Al-Awsat)
Green hydrogen is a clean fuel that will have an advanced position in energy production in the future. (Asharq Al-Awsat)
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Egypt Private Sector to Produce Green Hydrogen

Green hydrogen is a clean fuel that will have an advanced position in energy production in the future. (Asharq Al-Awsat)
Green hydrogen is a clean fuel that will have an advanced position in energy production in the future. (Asharq Al-Awsat)

Egypt’s private sector is considering boosting green hydrogen production, the clean energy of the future, through its local production and distribution.

MAN Energy Solutions has signed a memorandum of understanding (MoU) with TAQA Power in Cairo regarding a pilot project for the local production of green hydrogen to fuel domestic tourist busses.

The MoU sets the stage for MAN Energy Solutions to provide technical information to TAQA Power on employing electrolysis for a hydrogen-plant solution, due to run until autumn 2022.

MAN Energy Solutions is headquartered in Germany and has about 14,000 employees in more than 120 locations worldwide. Its business is aligned towards a range of solutions for decarbonization.

The company intends to drive the large-scale industrialization of electrolysis, pushing green hydrogen towards the mass market.

It produces stacks and megawatt electrolyzers based on the polymer-electrolyte membrane process (PEM) to cover industry and energy-refiner hydrogen demand. Its electrolyzers already make effective sector-coupling possible today.

TAQA Power Managing Director Samy AbdelKader announced: “We are delighted to join forces with MAN Energy Solutions for such a great endeavor in alignment with the Egyptian Government’s plan aiming to generate and increase the use of green hydrogen.”

He indicated that TAQA intends to lead the private sector to achieve the sustainable development goals set by President Abdul Fattah al-Sisi for Egypt’s Vision 2030.

Head of MAN Energy Solutions’ energy business in the region, Ghassan Saab, described the MoU as an “exciting venture” with a valuable partner in a country that recognized an essential role green hydrogen will play on the path to a climate-neutral, global economy.

It is also an excellent opportunity for MAN Energy Solutions to display its expertise in all processing steps of the hydrogen economy, he added.

“We look forward to working closely with TAQA Power in finding the optimal solution that will position them strongly in what will be one of the most important markets of the future.”

TAQA Electricity manages and operates the Benban solar power plant in Aswan, one of the region’s most significant renewable energy projects. The company established the 65-megawatt plant, with a total investment of $72 million.

TAQA Arabia is a subsidiary of a Qalaa Holdings company that develops and operates energy-distribution infrastructure, including gas transmission and distribution networks, EPC works, power-generation plants, and distribution networks for the oil & gas residential, commercial, and tourism sectors in Egypt.

It also markets petroleum and lubricants and develops and operates water-treatment stations. Currently, it is focusing on significantly increasing green-hydrogen production to expand its remit within the field of clean energy.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.