Algeria targets green hydrogen investment from Europe

Algeria is positioning itself as a strategic partner for European investors, particularly from Germany, in the fields of renewable energy, green hydrogen, and Power-to-X (Pt-X) applications. According to an investment guide published by the German agency GIZ on behalf of the German Federal Ministry for Economic Affairs and Energy, the country offers a competitive environment due to its proximity to Europe, significant solar and wind resources, low energy costs, and potential connection to the SoutH2 Corridor project.

To support this transition, the Algerian government adopted a green hydrogen production strategy in March 2023. The state-owned group Sonatrach aims to develop this sector alongside foreign partners. Short-term objectives include establishing several pilot electrolysis plants between 2 and 4 MW and a 50 MW reference installation by 2030. These projects are intended to support Pt-X applications such as e-methanol, e-kerosene, and green ammonia. Additionally, the Algerian ministry is currently developing a legal framework for the production and transport of green hydrogen and its derivatives.