Full Title: Economic and Technical Analysis of Hydrogen Production and Transport: A Case Study of Egypt
Author(s): Marwa Ahmed Hassan and Noha Hany El-Amary
Publisher(s): Nature Communications
Publication Date: March 15, 2025
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Description (excerpt):
This study investigates the economic, technical, and logistical aspects of hydrogen production, with a particular focus on Egypt’s potential to emerge as a global hydrogen leader. The research is motivated by Egypt’s abundant renewable resources, strategic location, and increasing interest in hydrogen as a cornerstone of the energy transition. Using the Hydra simulation model developed in MATLAB/Simulink, the study evaluates the Levelized Cost of Hydrogen (LCOH) and Levelized Supply Costs of Hydrogen (LSCOH) across various scenarios, spanning from 2024 to 2050. These scenarios incorporate factors such as economic growth, technological advancements, energy policies, and infrastructure developments. Projections indicate that the hydrogen demand in Egypt is expected to reach 6.0 million tons by 2050, including both domestic consumption and export potential. Egypt’s low hydrogen production costs (4.5/kg) and strategic location position it to meet growing domestic demand while supporting exports.
Comparative analyses with countries including France, Italy, Saudi Arabia, the UAE, Libya, and Jordan highlight Egypt’s competitive advantage, driven by its abundant solar and wind resources. The novel integration of LCOH and LSCOH methodologies, contextualized by Egypt’s renewable energy potential, fills a critical gap in the literature and offers a comprehensive framework for evaluating hydrogen production and trade competitiveness. The findings emphasize the importance of robust policy frameworks, including substantial incentives for renewable energy projects, de-risking mechanisms, and measures to reduce transport costs, in realizing Egypt’s hydrogen potential. Furthermore, the study explores the environmental and geopolitical implications of hydrogen production, underscoring Egypt’s strategic role in the global energy market. The results provide actionable insights for policymakers and industry stakeholders to position Egypt as a leader in hydrogen production, contributing significantly to the global energy transition.