In the name of the people,
the President of the Republic,
the House of Representatives decided the following law, and we have issued it:
Article (1):
In applying the provisions of this law, the following words and phrases shall have the meaning indicated
next to each of them:
The competent minister: The Prime Minister.
Green hydrogen: hydrogen produced from the electrolysis of
desalinated water based on renewable energy.
Green hydrogen derivatives: final products that depend in their production
on green hydrogen, such as green ammonia and green methanol.
Renewable energies: natural forms of energy that are inexhaustible and can
be used to produce electricity.
Developer: The legal person who wishes to implement one or more projects
to produce green hydrogen and its derivatives.
Project Company: The joint-stock company established by the developer in accordance with
existing legislation at the time the provisions of this law come into effect for the purpose of implementing one or more
green hydrogen production projects and its derivatives.
Project agreements: Contracts for green hydrogen production projects and its derivatives
concluded by the project company with administrative authorities with jurisdiction or companies affiliated with the state
responsible for managing public facilities.
Future expansions: Adding new assets will increase
the project’s production capacity
Article (2):
As an exception to the provisions of the Law on Special Economic Zones promulgated
by Law No. 83 of 2002, and the Investment Law promulgated by Law No. 72
of 2017, the provisions of this law apply to projects for the production of green hydrogen
and its derivatives for which project agreements are concluded within five years from The date
of implementation of this law, which is represented in the following:
1 – Factories producing green hydrogen and its derivatives.
2 – Desalinated water production stations that allocate no less than (95%) of
their production for use in the production of green hydrogen and its derivatives.
3 – Electrical energy production stations from renewable energy sources, which
allocate no less than (95%) of their production to feed factories. Production of green hydrogen
and its derivatives and desalinated water production stations referred to in clauses (1 and 2)
of this paragraph.
4 – Projects whose activity is limited to transporting, storing or distributing
green hydrogen and its derivatives produced within the Arab Republic of Egypt.
5 – Projects whose activity is limited, in a way Directly, on the manufacture of production requirements
or inputs necessary for the factories referred to in Clause (1) of this paragraph, for which
a decision is issued by the Council of Ministers based on the proposal of the competent minister and after taking the opinion of the minister
concerned with electricity and renewable energy affairs and the Minister of Finance.
Without prejudice to the provisions of the fourth paragraph. From Article (3) of this law,
its provisions apply to future expansions of the projects stipulated in the first paragraph
of this article.
Article (3):
The developer shall establish one or more of the company’s activities in accordance with the legislation regulating that,
and without prejudice to the rules regulating each activity.
The project to produce green hydrogen and its derivatives will be implemented under
the project agreements in accordance with the legislation regulating that.
The future expansions of this project will be implemented according to an additional agreement attached to
the project agreements after the approval of the Council of Ministers, and after taking the opinion of the Minister concerned with
electricity and renewable energy affairs and the jurisdiction of the land.
Projects for the production of green hydrogen and its derivatives and their future expansions will enjoy
the incentives stipulated in this law throughout the validity period of the project agreements, provided that
the project agreements for expansion are concluded within seven years from the date of the start of commercial operation
of the project.
Article (4):
Projects for the production of green hydrogen and its derivatives and their expansions are granted the following incentives:
1 – A cash investment incentive called the “Green Hydrogen Incentive” of no less than
(33%) and no more than (55%) of the value of the tax paid with the tax declaration on
The income generated from directing activity in the project or its expansions, as the case may be, and
the Ministry of Finance is committed to disbursing this incentive within forty-five days from the end of the deadline specified
for submitting the tax return. Otherwise, it will be entitled to a delay fee calculated on the basis of the
credit and discount rates announced by the Central Bank on January 1. Prior to
the incentive due date, this incentive is not considered taxable income. The categories of
the aforementioned incentive and the controls for granting it shall be determined by a decision from the Council of Ministers, based on the proposal of the
competent minister after taking the opinion of the Minister of Finance.
With the exception of passenger cars,
equipment and tools are exempt from value-added tax Machinery, equipment, raw materials, supplies, and necessary means of transportation necessary
to carry out the licensed activity for green hydrogen production projects and its derivatives.
3 – Exports from green hydrogen production projects and its derivatives are subject to
zero percent value-added tax.
It is also permissible, by a decision of the competent minister, after the approval of the Council of Ministers, to exempt projects
for the production of green hydrogen and its derivatives from the tax on built real estate due
on the real estate actually used in those projects, and from the stamp tax and documentation and
registration fees due on contracts for establishing companies and establishments and contracts for
credit facilities and mortgages related to them. Land registration contracts necessary to establish projects to produce
green hydrogen and its derivatives, and from the customs tax due on all imports
necessary to establish projects to produce green hydrogen and its derivatives, except for passenger cars.
Article (5):
Projects for the production of green hydrogen and its derivatives and their expansions, in addition to
the incentives stipulated in Article (4) of this law, are granted the following incentives:
1 – The project company obtains a single approval in accordance with the regulations contained in the
aforementioned investment law.
2 – Without prejudice to the provisions of the laws And the regulations and decisions regulating imports.
The project company has the right to import, on its own or through others, what it needs for its establishment
, expansion, or operation, including raw materials, production requirements, machines, spare parts
, and means of transportation appropriate to the nature of its activity, without the need to register them in the importers’ register.
It also has the right To export its products, personally or through an intermediary, without a license and without the need to register them
in the exporters’ register.
The project company has the right to employ foreign workers within a percentage of (30%)
of the total number of its employees, during the first ten years from the date of signing
the project agreements.
4 – Allowing the establishment of departments. Special customs duties for the project’s exports or imports in agreement
with the Minister of Finance.
5 – The project company will be granted a reduction of 30% of the value of fees and categories for
the use of seaports and maritime transport and for the services provided to ships in
Egyptian seaports, and for the use of fixed and floating equipment and facilities
belonging to agencies. Seaports, the Maritime Safety Authority, liquid bulk activities and
ship bunkering, and in exchange for electronic services provided by Egyptian seaports administrations.
6 – The project company is granted a reduction of (25%) from the value of the usufruct right
of industrial lands designated for the establishment of a factory for the production of green hydrogen and its derivatives,
and (20%) of the usufruct right of lands of storage warehouses in ports,
without prejudice to the annual increases in return for the usufruct right of contracts. Usufruct and licenses, while
adhering to any other regulatory rules established by the authority having jurisdiction over the lands.
7 – Granting a grace period for payment of the right to usufruct the industrial and storage lands
of the project and its expansions allocated by the authorities having jurisdiction over the land,
so that payment begins from the date of commercial operation of the project, without accounting. Any interest
or fines
8 – The terms of the licenses required to implement green hydrogen production projects
and its derivatives are the same as the terms of the usufruct of the project lands.
Article (6):
In order for projects to produce green hydrogen and its derivatives and their expansions to be granted the incentives
prescribed under this law, the following conditions must be met:
1 – Commercial operation of the project must begin within five years from the date of concluding
the project agreements.
2 – That the project or its expansions, as the case may be, depend for its financing on
foreign exchange financed from abroad at a rate of no less than (70%) of its investment cost.
3 – That the project is committed to using locally manufactured components necessary for its implementation
whenever they are available in the local market and at a minimum percentage. (20%) of the project components.
4 – That the project contributes to the transfer and localization of modern and advanced technology and techniques
to Egypt, with a commitment to developing and implementing training programs for Egyptian workers.
5 – That the project company commits to developing a plan for the development of the local areas in which it operates
through the implementation of rules Social responsibility in accordance with the provisions of Article (15) of the
aforementioned Investment Law.
The Council of Ministers, based on the proposal of the competent minister, and after taking the opinion of the Minister
concerned with electricity and renewable energy affairs and the Minister of Finance, shall issue a decision regarding the necessary controls
to verify the availability of the conditions stipulated in this law.
Article (7):
The competent minister or his authorized representative shall issue the necessary certificate to enjoy the incentives stipulated
in this law.
This certificate is considered final and effective on its own without the need for approval from other parties,
and all parties must act in accordance with it and abide by the data contained therein.
Article (8):
This law shall be published in the Official Gazette, and shall be effective from the day following
the date of its publication.
This law shall be stamped with the seal of the state, and enforced as one of its laws .
Issued by the Presidency of the Republic on Rajab 15, 1445 AH
(corresponding to January 27, 2024 AD).
Abdel Fattah Al-Sisi
