Implementing the OECD Framework for Industry’s Net‑Zero Transition in Egypt

Annex E. Framework consultation process

Objective

This annex outlines the analytical steps taken to implement the OECD Framework for Industry’s Net-Zero Transition (the Framework) and summarises the stakeholder consultations conducted throughout the process.

Framework implementation process

Analytic process

Steps 1 and 2, the Framework focused on market landscape research and data collection rather than the technical assessment of various technological choices for decarbonizing industrial sectors (e.g. steel, petrochemicals), as agreed upon under the guidance of the Steering Committee. The initial research findings were submitted to the Government of Egypt for review and served as the basis for consultations with various stakeholders to identify and validate the most up-to-date data available.

Step 3 involved a techno-economic assessment to evaluate the cost-competitiveness of low-carbon hydrogen production in Egypt under a range of production scenarios, as detailed in Chapter 2. This included modelling the LCOH for both green and blue hydrogen, using inputs such as Weighted average cost of capital (WACC), electricity costs, transport and carbon mitigation costs. The analysis also covered derivative products – green ammonia, e-methanol and green iron – by calculating their respective levelised costs, based on the lowest-cost hydrogen obtained from LCOH calculation of green hydrogen. In addition, infrastructure investment needs were assessed to meet national targets align with Egypt’s National Low‑Carbon Hydrogen Strategy.

Step 4 focused on identifying and evaluating financial and market-based instruments through an investor survey and their effectiveness on addressing the cost-competitiveness gap. As detailed in Chapter 3, this analysis assessed the impact of these instruments – such as CAPEX grants, concessional loans, and CfDs – on closing the cost-competitiveness gap against the price of USD 1.8/kg H₂ envisioned in Egypt’s National Low-Carbon Hydrogen Strategy by 2040. The selection of these instruments was based on investor survey. It also examined the enabling investment conditions needed to scale hydrogen deployment in Egypt. The findings were subsequently validated through consultations with government officials, international financial institutions and industry stakeholders, ensuring that the proposed instruments reflect both market realities and policy priorities. This process fed directly into the development of the targeted solutions presented in Chapter 4, which aim to enhance project bankability and operationalise Egypt’s national low-carbon hydrogen strategy.

Step 5 includes a range of dissemination and outreach activities. In particular, the findings from this report aims to be integrated into various training programmes (i.e. Green Hydrogen Centre of Excellence in Cairo). In addition, solutions presented in this report, such as the double auction mechanism for green hydrogen (i.e. H2Global), will be explored for potential testing in the Egyptian market. These efforts aim to enhance the expertise and capacity of key stakeholders, including policymakers and private sector actors, who play a crucial role in advancing green hydrogen discussions in Egypt.

Stakeholder consultation process

According to the Framework, the three key stakeholder groups that were engaged in the Framework implementation are: policymakers, industry and finance institutions. The OECD team identified and so far, engaged with and reached out to the following stakeholder groups from Egypt for the Framework implementation:

• Policymakers: MoRE, MoPED, MoF, MoIC, EgyptERA, Egyptian Electricity Transmission Company (EETC), Egyptian Electricity Holding Company (EEHC), New and Renewable Energy Authority (NREA) and the Egyptian Competition Authority, etc.

• Industry and IFIs: BP, French EDF, BP, Scantec, Masdar, ReNew Power, AMEA, Globeleq, China Energy, TotalEnergies, Fortescue Future Industries, Siemens Energy, Egyptian Basic Industries Company, etc.

• Financial institutions: The Sovereign Fund of Egypt, Nation Development Bank of Egypt, European Bank for Reconstruction and Development (EBRD), African Development Bank, French Development Agency (AfD), German Agency for International Cooperation (GIZ), Green Climate Fund, KfW, United States Agency for International Development, European Investment Bank, Climate Investment Funds (CIF), the World Bank, International Finance Corporation, etc.

• Others: African Green Hydrogen Alliance, United Nations Development Programme (UNDP), United Nations Industrial Development Organisation (UNIDO), World Economic Forum (WEF), International Energy Agency (IEA), OECD Directorate for Science, Technology and Innovation, etc.

In addition to these stakeholders, the OECD team convened three public-private stakeholder workshops as part of the consultation process. These workshops intended to serve as the technical advisory group for the Framework implementation, as follows:

• On 30 January 2024, the OECD organised its first stakeholder meeting to assess the progress of low-carbon hydrogen implementation in Egypt. The OECD team presented a detailed implementation timeline, outlining the scope of work, methodology and planned deliverables. The purpose of this initial consultation was to showcase the Framework to a broader stakeholder group and foster synergy with ongoing work in the country. This meeting also served as a platform to align expectations among key stakeholders and ensure a co-ordinated approach to advancing Egypt’s hydrogen economy.

• On 29 May 2024, the OECD organised a second stakeholder meeting to explore the financing and industrial applications of low-carbon hydrogen. The focus of this meeting was to understand key barriers and potential solutions from the perspective of industry sector players in Egypt. The OECD team presented initial findings on the LCOH for green hydrogen projects.

• On 15-16 April 2025, the OECD hosted a stakeholder workshop in Cairo to present a comprehensive analysis of the opportunities and challenges related to Egypt’s ambition to establish itself as a major player in the low-carbon hydrogen economy. During the workshop, the OECD team shared findings of the competitiveness gap, assessed investment needs and presented initial results of selected financial instruments impact on narrowing this gap.