Egypt’s energy sector is heavily dominated by fossil fuels, which accounted for approximately 88–89% of electricity generation in 2023–2024, with natural gas being the primary source (over 80%). The country is rapidly expanding renewable energy, primarily wind and solar (about 5% combined) and hydropower (7%), aiming for 42% renewable electricity by 2030 or 2035.

Egypt is rapidly establishing itself as a premier global hub for green hydrogen and ammonia production, leveraging its high solar/wind resources and strategic location in the Suez Canal Economic Zone. With over $40 billion in planned investments, the country aims for 8% of the global market by 2040, focusing on exporting green ammonia to Europe. Key projects are already in operation or development, such as the 100 MW Scatec facility.

In August 2025, Egypt announced its national low-carbon hydrogen strategy, targeting a production of 5.6 million tons per year by 2040.

In early 2026, Egypt saw major international, including French, partnerships for massive green hydrogen/ammonia production. Partnerships include Scatec (Norway), Siemens, and various European firms, with support from the European Bank and the IFC.