Algeria's state-owned oil and gas company Sonatrach has signed two memoranda of understanding (MoUs) with European firms to explore the feasibility of green hydrogen production projects in the country.
The first MoU involves collaboration with Germany's VNG, Italy's Snam, Seacorridor, and Austria's Verbund Green Hydrogen, alongside Algeria's state-owned Sonelgaz. This agreement aims to study the hydrogen value chain to evaluate the viability and profitability of an integrated green hydrogen production project in Algeria, with plans to supply the European market via the proposed SoutH2 Corridor pipeline.
The second MoU was established with Spain's Cepsa, focusing on the integrated production of green hydrogen and its derivatives in Algeria, intended for export to European markets. This project is structured in two phases: the first phase will conduct a feasibility study, while the second phase will involve project development.
Should the project progress to construction, the partners plan to build an electrolysis plant powered by solar and wind energy, along with facilities for producing methanol and/or green ammonia. Additionally, the project will require storage and transport infrastructure, as well as other ancillary installations for commercial operations.
These agreements align with Algeria's ambitions to become a significant exporter of green hydrogen to Europe, in tandem with neighboring Tunisia.
