Algeria adds green hydrogen to its energy portfolio

Algeria is expanding its energy portfolio by incorporating green hydrogen, aiming to bolster its standing in the clean energy sector and potentially export this renewable resource to Europe. The nation boasts extensive, sun-drenched landscapes perfect for solar energy generation, as well as a strategic northern Mediterranean coastline adjacent to Southern Europe.

Green hydrogen is produced through electrolysis, a process that employs renewable electricity, typically sourced from solar panels, to split water molecules into hydrogen and oxygen. The cost-effectiveness and abundance of electricity significantly influence the competitiveness of green hydrogen projects. Algeria's arid regions receive approximately 3,500 hours of sunlight annually, while several areas also exhibit promising wind energy potential, with an estimated production capacity of around 35,000 megawatts.

However, transforming potential into practical projects necessitates careful planning, addressing structural challenges, and securing sustainable financing.

As the largest country in Africa and the tenth largest globally, Algeria possesses the geographical advantages to make a substantial impact on the renewable energy market. Central to this role is the SoutH2 Corridor, a dedicated hydrogen pipeline network intended to transport renewable "green" hydrogen from North Africa to Europe.

Mohamed Ghazli, an Algerian international energy transition expert based in Germany, emphasizes that Algeria is not merely a potential supplier but the closest and safest option for Europe through this SoutH2 Corridor project. The corridor aims to connect production areas in Algeria and Tunisia with Italy, Austria, and Germany, with the goal of providing import capacity for over 4 million tonnes of green hydrogen annually, starting in the early 2030s.

The European Union has included the corridor's components as part of its Projects of Common Interest initiative, representing about 40% of the green hydrogen imports targeted under the EU’s clean energy plan for 2030.