On Monday, December 25, 2023, the Egyptian Parliament’s Energy and Environment Committee approved a proposed law endorsing tax and non-tax benefits for initiatives dedicated to producing green hydrogen and its derivatives in the North African nation.
The draft law was submitted by the government and discussed at two meetings attended by representatives of the ministries of electricity and renewable energy, planning and economic development, as well as finance. Waleid Gamal El-Dien, the chairman of the Suez Canal Economic Zone (SCZONE), which will host many of the planned green hydrogen projects, also took part in the discussions.
During the debates, the minister of parliamentary affairs, Alaa El-Din Fouad, pointed out that the draft law provides many incentives targeted at developing green energy, attracting investments, and making the country competitive. The goal is to position Egypt as an international hub for the production of green hydrogen and its derivatives.
Details about the incentives were not disclosed in the statement published by the Egyptian Cabinet on Monday.
In May, Egypt’s finance minister, Mohamed Maait, announced the government’s intention to provide a tax incentive to bolster green hydrogen production, with rates ranging from 33% to 55% of the taxes owed.
