From ambition to bankability: Unlocking final investment decision for green hydrogen in Egypt and Morocco

Summary

Egypt and Morocco have emerged as two of the most prominent potential hubs for large-scale green hydrogen and green ammonia production in the Mediterranean. Both countries have adopted national hydrogen strategies, introduced incentive frameworks, and attracted strong interest from international developers and investors. Project pipelines have expanded rapidly in recent years, reflecting the strategic opportunity to combine abundant renewable energy resources with proximity to European demand centres. Despite this momentum, no project in either country have yet progressed to final investment decision (FID). This report examines why. Rather than focusing on individual projects, it analyses how financing, risk allocation, and institutional coordination interact across the project lifecycle, and how these dynamics influence the ability of projects to reach bankability.

The analysis is based on stakeholder interviews with developers, development finance institutions, commercial banks, public institutions, and other actors involved in green hydrogen development in Egypt and Morocco. These interviews inform three analytical visuals that structure the report: a risk accumulation and bankability bottleneck schematic, a project-cycle financing stack diagram, and a stakeholder influence map.