North African countries are characterised by high-quality solar energy potential, which can be used for production and export of renewables-based (green) hydrogen. Due to the existing pipeline structures and exports of energy resources to European countries, the export potential of green hydrogen from North Africa to Europe and its cost-competitiveness has been covered widely in research. However, the current literature largely focuses on the decarbonisation in the European importing countries, neglecting the effects of an export-oriented hydrogen industry in the exporting countries themselves. This research project therefore contributes to the literature by investigating the effects of an export-oriented hydrogen industry in Egypt, particularly evaluating to what extent it would contribute to the decarbonisation of the national energy system. The study will identify potential impacts on the various economic sectors of Egypt and provide policy suggestions on the composition of a meaningful and effective hydrogen industry.
Methodology The research questions is investigated via a fundamental energy system model. The core-component of the model is a cost-minimising fundamental electricity market model. It is formulated as a linear programming optimization model that allows simulation of investments and optimal dispatch in the electricity market. The core model is further combined with additional modules depicting industry, heating, transportation, and water/desalination sectors. Hence, it allows endogenous simulation of investments in the sectors that are relevant for the hydrogen economy. It is furthermore accompanied by research associated with meteorological characteristics of the MENA region including the impact of sand storms on the energy production. The model is based on a detailed dataset covering the above-mentioned sectors in Egypt. Under various scenarios with varying decarbonisation targets and cost assumptions, the export potential of hydrogen from Egypt to Europe will be investigated.