In a significant stride towards economic growth, job creation, and sustainable industrial development, Egypt has recently approved two major initiatives. These initiatives reflect the country's commitment to aligning with global trends in renewable energy and green transportation, as well as its determination to bolster the local automotive and gas industries.
Electric Vehicle Manufacturing:
The Egyptian Cabinet granted a golden license to EgyptSat Auto, a private local auto manufacturer, to establish and operate a factory for manufacturing electric vehicles (EVs). This groundbreaking venture will encompass an impressive 50,000 square meters within the 10th of Ramadan city, with investments amounting to EGP 300 million.
EgyptSat Auto's ambitious project is set to produce a diverse range of electric vehicles, including passenger cars, buses, motorcycles, and charging stations. Additionally, it will manufacture electric scooters, tricycles, components, and spare parts for EVs.
The company's mission extends beyond economic growth; it aims to reduce the country's dependence on imports, promote local industries, enhance domestic components, transfer and localize modern technology in the electric vehicle manufacturing sector, and ultimately, mitigate environmental impacts and emissions.
EgyptSat Auto, founded in March 2023, is led by its Chairman, Mohammed El-Ghamry, who also serves as the Vice President of the Arab Academy for Science, Technology, and Maritime Transport (AASTMT) and Dean of Applied Research at the academy.
In collaboration with EgyptSat Auto and local EV sales agent MATGR, AASTMT announced plans to introduce the first electric car to the Egyptian market during the first quarter of 2024. The academy had already taken steps in this direction by producing prototypes for Egypt's inaugural electric cars in February.
These developments align with Egypt's national strategy to develop the local automotive industry, a strategy launched in June 2022 to ensure competitiveness in the regional market.
Gas Expansion for Energy Needs:
In another strategic move to meet the nation's energy demands, the Egyptian government granted the Egyptian Natural Gas Company (GASCO) a golden license for a vital project. GASCO will add a fourth production line to its Western Desert Gas Complex, located in Alexandria's Amreya city. The project, estimated at $380 million, will occupy 33 feddans of land and aims to produce 600 million cubic meters of natural gas per day.
This expansion project by GASCO has multiple objectives. It seeks to increase the production of natural gas derivatives, petrochemicals raw materials, condensates, and butane. Furthermore, it aims to supply essential LPG (butane gas) and condensates to meet local market demands.
As a subsidiary of the state-owned Egyptian Natural Gas Holding Company, GASCO plays a pivotal role in natural gas transmission, distribution, and processing in Egypt.
To bolster gas production and address local demand, Egypt has allocated $1.8 billion for the drilling of 35 new exploratory natural gas wells in the Mediterranean and the Nile Delta by 2025. As per the government's plan, 21 of these wells will be completed during the fiscal year 2023/2024, with the remaining 14 in 2024/2025.
These strategic decisions underscore Egypt's commitment to economic growth and innovation, job creation, and sustainable development. By embracing electric vehicle manufacturing and expanding its gas capabilities, Egypt positions itself as a forward-thinking player in the global transition towards cleaner energy and transportation solutions.