Algeria’s national oil company Sonatrach signed an agreement with multinational energy company CEPSA for the development of an integrated green hydrogen project in Algeria. Under the terms of the deal, the partners will develop the project in two phases with the intention of boosting green hydrogen exports to Europe.
The first stage includes a joint study on the viability and profitability of the green hydrogen project. Following this, the second phase will include developing an electrolyser plant, solar and wind energy generators, methanol/green ammonia production and storage facilities as well as transportation infrastructure to supply Spain and other European markets with green hydrogen.
Sonatrach – alongside Algeria’s state-owned gas company Sonelgaz – also signed an MoU with energy and infrastructure firms VNG, SNAM, Seacorridor and VERBUND. The agreement outlines a strategy to collaboratively assess the viability of exporting green hydrogen produced in Algeria to Europe via the SoutH2 Corridor.
Connecting North Africa with Italy, Austria and Germany, the SouthH2 Corridor is a planned 3,300 km hydrogen pipeline with a capacity of 4 million tons per annum. Set to become operational in 2030, the pipeline will transport green hydrogen produced in Algeria to a set of European demand clusters.
