In Egypt’s southern Aswan province, within the heart of the desert, rows of solar panels at the Benban Solar Park harness abundant sunlight, converting it into vital energy for local residents. The Benban project, one of the largest solar parks globally, is just one example of the many green projects emerging in Egypt. Recent efforts by the Egyptian government under the framework of its "Vision 2030" aim to accelerate the nation’s green growth strategy, and Chinese companies are playing a key role in these initiatives.


Multiple Green Projects Launched

In late August, Egypt's Minister of Housing, Sherif Sherbini, laid the foundation stone for the country’s first green industrial park, located in New Alamein City along the Mediterranean coast. The park, spanning over 400,000 square meters, represents a total investment exceeding EGP 12 billion (approximately USD 246 million) and is scheduled to become operational by the second quarter of 2025.

The industrial park will manufacture clean energy equipment such as solar water heaters and wind turbines, while introducing advanced environmental production technologies to create biodegradable and low-pollution materials for use in sectors such as construction and packaging. The park integrates eco-friendly concepts in its design, construction, and operations, with a goal of achieving zero or low emissions. Facilities will be constructed to treat waste, transforming it into resources such as organic fertilizers and biofuels. “The aim of the green industrial park is to position Egypt as a key export hub in the region, benefiting from trade agreements with Middle Eastern, African, and European countries while meeting domestic demand,” stated Sherbini.

Earlier in 2024, the Egyptian government reiterated its goal to develop a “Green Canal” strategy by 2030 during a cabinet meeting. First proposed in November 2022, the Green Canal initiative was further detailed in August 2023 with specific targets aimed at improving environmental performance and reducing carbon emissions, transforming the Suez Canal into a modern, environmentally sustainable waterway.

To achieve these goals, Egypt is taking several measures: prioritizing environmental protection, supporting the International Maritime Organization’s efforts to reduce maritime emissions, encouraging the use of clean fuels, developing new shipping channels, implementing solar and wind power systems, and enhancing pollution control and waste recycling. The Suez Canal Authority also plans to build the region’s first green yacht marina powered by renewable energy.

Green construction is another key element of Egypt’s green economy initiative. The country’s new administrative capital is set to begin construction of a hydrogen-powered, eco-friendly skyscraper in early 2025, which will be completed by 2030. The 50-story building will source 25% of its energy from integrated solar panels, with the remainder supplied by hydrogen power, making it the first net-zero carbon building in the Middle East and North Africa.

Additionally, Egypt has issued green bonds to finance sustainable projects. In October 2023, the Ministry of Finance successfully issued the first-ever sustainable panda bonds in the Middle East and North Africa, raising RMB 3.5 billion in China. This move not only provided funds for Egypt’s green projects but also demonstrated the potential of green bonds in supporting global sustainable development. The initiative strengthened ties between Egypt and China in the field of green finance. The Egyptian Ministry of Finance hailed the issuance as a new opportunity to enhance bilateral cooperation, share experiences, and promote the achievement of Egypt's sustainable development goals under its "Vision 2030."
According to a report by the World Bank, by promoting renewable energy projects and energy-saving technologies, Egypt can reduce its reliance on fossil fuels and achieve more sustainable economic and social development. The report estimates that by pursuing a green economy, Egypt could reduce its pollution emissions by 30% annually.


Developing a Regional Clean Energy Hub

In August 2024, Egypt officially launched its National Low-Carbon Hydrogen Strategy, outlining a roadmap for the development of the hydrogen sector over the coming decades. The strategy targets the production of 1.5 million tons of green hydrogen and derivatives by 2030, increasing to 5.8 million tons by 2040, with 3.8 million tons designated for export. The hydrogen industry is expected to contribute approximately USD 18 billion to Egypt’s GDP and create over 100,000 jobs by 2040. Egyptian Prime Minister Mostafa Madbouly emphasized that the strategy will help diversify Egypt’s clean and sustainable energy mix while reducing carbon emissions, in line with international commitments.

In recent years, Egypt has signed several memoranda of understanding (MoUs) and framework agreements related to green hydrogen development, aiming to position itself as a regional hub for green energy production and export. In 2022, the Egyptian government unveiled a large-scale green hydrogen facility construction plan for the Suez Canal Economic Zone, which includes building new energy plants powered by solar and wind to support hydrogen production through electrolysis. The plan also includes infrastructure for the storage and processing of hydrogen and ammonia to ensure efficient and safe production. In February 2024, Egypt signed seven MoUs with international developers to promote the development of green hydrogen and renewable energy projects in the Suez Canal Economic Zone, with projected investments exceeding USD 40 billion over the next decade.

In January 2024, the Egyptian government passed a new green hydrogen subsidy law, offering tax reductions ranging from 33% to 55% for green hydrogen projects. The law also exempts raw materials, machinery, tools, equipment, and transportation from value-added tax (VAT), stamp duty, and customs duties. Additionally, green hydrogen exports and derivatives are exempt from VAT. The government plans to further incentivize green projects by increasing the share of green public investments and reforming legislation to attract both local and foreign investment. Official data shows that government-funded green public investments will account for 50% of total public investment in the 2024/2025 fiscal year.


Chinese Companies Provide Critical Support

The Benban Solar Park, located in Aswan, Egypt, covers a vast desert area and gleams under the sun with its rows of neatly arranged PV panels. As one of the largest solar parks in the world, Benban converts sunlight into clean energy to supply continuous green electricity to the local grid. This project, which began construction in April 2018, is Egypt’s first solar power project financed and built by Chinese companies. It plans to build 40 solar plants with a total installed capacity of 2,000 MW, of which 32 have already been completed and are in operation. The Egyptian Ministry of Electricity and Renewable Energy stated that the Benban Solar Park will help Egypt increase its renewable energy usage and is expected to reduce carbon dioxide emissions by 2 million tons annually.

In recent years, Chinese companies have been involved in various clean energy and green development projects across Egypt, including the Suez Bay 500 MW wind power project, the Kom Ombo 500 MW PV power station, and the Koum Ombo Solar Power Plant. In 2022, China Energy Engineering Group signed an MoU with Egypt for the development of a green hydrogen project. Earlier this year, China Power Engineering Consulting Group signed an MoU with the Egyptian government to develop a 10 GW solar project. According to Al-Akhbar, a major Egyptian newspaper, Chinese companies have played a pivotal role in supporting Egypt’s green economy development through active participation in green energy projects.

Nadia Hilmi, a professor at Beni Suef University, told People’s Daily that China not only provides advanced technology and equipment but also sends experienced engineers and technical personnel to collaborate closely with Egyptian teams. "It is thanks to this efficient and professional support that projects like the Benban Solar Park have been able to come to fruition so quickly," she noted.

Despite the progress, Egypt still requires more international investment and technical cooperation to continue its green economic development. “Chinese investment and technological support have accelerated Egypt’s green economic growth. I believe that in the future, Egypt and China will continue to collaborate on more projects,” said Mustafa Sherbini, an expert in sustainable development and climate risk assessment.