4 Feb 2024
Sun, Sand, and Green Fuel: Egypt Lures Investors with Sweet Incentives for Hydrogen Projects
Calling all green hydrogen dreamers! Egypt just rolled out a mega-incentive package to make your clean fuel dreams a reality. President El-Sisi signed a law offering a tax credit buffet, VAT exemptions galore, and even discounted land to jumpstart the country's green hydrogen industry.
Here's the juicy scoop:
Tax cuts: Slice up to 55% off your tax bill if you meet local content and financing requirements. Talk about a sweet deal!
VAT-free zone: Equipment, materials, and even exports get a VAT exemption, making your project even more cost-effective.
Land grab: Score a 25% discount on land for production and 20% off for storage near ports, giving you more room to grow.
Speedy shipping: Enjoy 30% off port fees and maritime services to get your hydrogen flowing quickly.
But there are some strings attached:
Foreign funding: Secure 70% of your investment from abroad and start operations within 5 years. No time for dilly-dallying!
Local love: Use locally made components whenever possible and ensure at least 20% local content. Support the Egyptian economy, too!
Limited workforce: You can hire foreign workers, but only up to 30% of your team. Let the local talent shine!
The big picture: Egypt's aiming to be a green hydrogen powerhouse, with plans to produce millions of tonnes by 2040. These incentives are their secret weapon to attract investors and get the ball rolling.
Will it work? Time will tell. Some projects are still on the drawing board, and security concerns near the Suez Canal might throw a wrench in things. But with these golden ticket incentives, Egypt's definitely making a strong play for the green hydrogen crown.