Masdar in the UAE and Hassan Allam Utilities in Egypt have reached an agreement with Egyptian state-backed organizations to collaborate on large-scale development of green hydrogen.

In an announcement Sunday, Masdar — which is owned by Abu Dhabi state fund Mubadala — said the two agreements related to facilities earmarked for the Mediterranean coast and Suez Canal Economic Zone.

Egypt’s electrolyzer projects are targeting a capacity of 4 gigawatts, which could allow for a production rate of up to 480,000 tons per year.

International Energy Agency calls hydrogen a versatile energy carrier. It can be applied in many sectors including industry and transport.

There are many ways to make it. An example of this is electrolysis. Electrolysis involves using an electric current that splits water into hydrogen or oxygen.

This process is called green hydrogen if the electricity comes from renewable sources such as solar or wind.

There is some excitement about hydrogen’s potential in some quarters, but the majority of hydrogen production is still based upon fossil fuels.

Masdar stated in a statement that Hassan Allam Utilities and Masdar see Egypt as an important hub for green hydrogen production. They are targeting Europe’s bunkering market and exporting to Europe. This will also help boost local industries.

“Egypt enjoys abundant solar and wind resources that allow generation of renewable power at a highly competitive cost — a key enabler for green hydrogen production,” it added. It is located in close proximity of markets that are expected to see the greatest growth in green hydrogen demand, which provides strong export opportunities.

Masdar’s reference to Europe in his article is very instructive. It shows how Europe could grow as the major economies decarbonize.

The CEO of an Italian company will be elected in July 2021 Snam outlined a vision for the future of hydrogen,The beauty of the item was its ease of storage and transportability.

Speaking to CNBC’s “Squawk Box Europe,” Marco Alverà spoke about how current systems would be used to facilitate the delivery of hydrogen produced using renewable sources as well as biofuels.

He said, “Right now if you turn off your heater in Italy, the gas flows from Russia all the way to Siberia in pipelines.”

“Tomorrow, we will have hydrogen produced in North Africa, in the North Sea, with solar and wind resources,” Alverà said. The existing pipeline can transport that hydrogen.

The European Commission has, for its part, laid out plans to build 40 GWs of hydrogen electrolyzer capacity within the EU’s executive arm.

This goal is not the only thing the plan for the commission envisages. It also envisions 40 more GW being “exported to Europe” from Europe’s neighboring countries.

Over the last few years, many companies have raised hydrogen issues.

In a recent interview with CNBC, Michele DellaVigna, Goldman Sachs’The EMEA regional leader of commodity equity’s business unit sought to emphasize the importance he believed it would play in the future.

He said, “We can’t go to net-zero if we only use renewable power.”

DellaVigna said, adding that hydrogen is “a powerful molecule” and suggested that it “should take on the role of natural gases today.”

According to him, the secret was “produce it with no CO2 emissions.” This is why green hydrogen, or blue hydrogen, is so important.

Blue hydrogen refers to hydrogen produced using natural gas — a fossil fuel — with the CO2 emissions generated during the process captured and stored. It has existed since a charged debate around the role blue hydrogen can play in the decarbonization of society.

DellaVigna explained that regardless of whether we use electrolysis, or carbon capture to make hydrogen, the goal is to do so in a clean manner. Once we do have that, we could have at least 15% of global energy markets, which would mean it would be… more than a trillion dollars per year.