Egyptian Draft Law Promoting Green Hydrogen Projects Approved
A draft law aiming to boost green hydrogen projects has been granted approval by Egypt’s Cabinet in a meeting chaired by Prime Minister Mostafa Madbouly.
Designed to incentivise low-carbon initiatives, the legislation applies to green hydrogen production projects, on the condition that agreements are reached within five years of the law’s implementation.
Included within the range of initiatives encompassed by the law are the establishment of green hydrogen production plants, renewable energy facilities dedicating at least 95% to these plants, and projects surrounding the transportation, storage, and distribution of green hydrogen.
The law also supports existing projects in increasing their production capacity. Developers will be mandated to establish a project company and adhere to project agreements for up to 50 years.
Projects and expansions will also benefit from incentives throughout the duration of their agreements, provided certain conditions are met, such as commencing commercial operation within five years.
These incentives include a cash investment of between 33 and 55% of the tax paid on any generated income. Furthermore, equipment and materials will be exempt from VAT and customs tax on imported goods connected to the projects, and taxes and fees on contracts and land registration will similarly be waived.