US-German plan to reduce gas consumption in Egypt

The European Union is seeking an alternative to Russian gas and diversifying its energy sources, while Germany has found other options for its needs via the Middle East and the United States.

Germany depended on Russia for more than 60% of its energy needs.

In partnership with the United States, Germany is trying to reduce local consumption of Egyptian gas by increasing the use of renewable energies, with the aim of supplying Berlin with gas.

Under the US-German plan, Egyptian gas would cover a large part of Germany’s gas needs in the coming period.

In addition, Egypt’s supply and export of gas would increase its hard currency, strengthen its political and economic presence in the international community, and help achieve its climate goals.

The US, German and Egyptian governments released a political statement outlining a plan to accelerate Egypt’s energy transition through the Egyptian National Platform for the Food, Water and Energy Nexus ( NWFE).

The statement notes that Washington and Berlin have pledged to mobilize more than $250 million in resources to support the deployment of 10 GW of new wind and solar power projects while decommissioning 5 GW of inefficient natural gas generation.

The project is coordinated by the European Bank for Reconstruction and Development, the State Department statement said.

Egypt has committed to improving its Nationally Determined Contribution by quadrupling its share of installed renewable energy capacity to 42% by 2030. It has also committed to adopting an ambitious long-term strategy for 2050 to explore a goal of net zero greenhouse gas emissions and to initiate the development of green hydrogen.

Meanwhile, US President Joe Biden announced during his speech at the United Nations climate summit (COP27) in Sharm el-Sheikh on Friday that Washington, in partnership with the EU and Germany, would provide a $500 million to fund and facilitate Egypt’s transition to clean energy.

Biden announced that the United States would provide $150 million in initiatives to African countries to deal with the consequences of climate change.

Biden added, “We will also work with Egypt to capture nearly four billion cubic meters of natural gas, which Egypt currently flares, vents or leaks from its oil and gas operations. And through this cooperation, the Egypt is raising its climate ambition and submitting an enhanced Nationally Determined Contribution.”

Egypt has recently signed several memorandums of understanding on green hydrogen projects, aiming to produce it from clean and emission-free energy sources.

James R. Rhodes