Green hydrogen: Germany ready to invest in Algeria

The two sides hailed the significant advances in their bilateral collaboration, notably through flagship projects such as TaqatHy and SoutH2 Corridor, which position Algeria as a key player in producing and exporting green hydrogen to Europe. At the meeting, attended by senior officials from the Ministry of Energy, both parties reaffirmed their commitment to deepening their partnership in renewable energies, energy efficiency and the development of green hydrogen. "Relations between Algeria and Germany in the energy sector are solid and promising", said Mr. Yassaâ, underlining Algeria's strategic importance as a hub for clean energies, thanks to its abundant natural resources and growing expertise. German ambassador for his part, expressed his country's willingness to support Algerian projects in this field, highlighting "the great potential of the Algerian energy sector, particularly in terms of renewable energies and green hydrogen". He also reiterated Germany's commitment to "supporting Algeria through direct investment and long-term strategic partnerships".

SoutH2 Corridor and TaqatHy, structuring projects

At the heart of this cooperation are two main projects: TaqatHy and SoutH2 Corridor. The first, with a budget of $12 million, aims to strengthen Algeria's technical and institutional skills in renewable energies and green hydrogen. The Ministry of Energy and Mines and the German Society for International Cooperation (GIZ), signed an agreement in October 2023 to advance this project, which plans to develop the large- and medium-scale renewable energies, while promoting technology transfer and training. The second project, SoutH2 Corridor, aims to create a trans-Mediterranean gas pipeline to transport green hydrogen produced in Algeria via Tunisia to Italy and Germany. This project, currently under study between Algeria, Germany, Austria, Italy, and Tunisia, embodies a win-win partnership approach, aligned with the Mattei plan and aimed at diversifying energy resources while ensuring sustainability in the Mediterranean region.

A strategic alliance for the future

Algerian-German cooperation in green hydrogen perfectly illustrates the convergence of interests between the two countries. For Algeria, it's a question of capitalizing on its natural resources and strengthening its position as regional leader in clean energies. For Germany, it's an opportunity to secure a sustainable supply of green hydrogen, essential to its energy transition and the decarbonization of its economy. In the wake of these partnerships and to turn their ambitions into reality, in February 2024 Algeria and Germany signed a joint declaration of intent to set up a bilateral Hydrogen Task Force. This initiative aims to strengthen investment in all economic sectors linked to hydrogen development, by promoting the exchange of expertise and technology transfer. As Algeria is in an energy transition phase, it needs this technological support, demonstrating the importance of taking advantage of German technological advances. Another example of this strategic alliance between the two countries is the experimental green hydrogen production project in preparation with Sonatrach in Arzew, with a capacity of 50 megawatts and a German financial contribution of 20 million euros. This project is part of a wide action plan to develop green hydrogen in Algeria and export it to Germany and Europe via the SoutH2 corridor. A second direct pipeline from Algeria to Europe is also being considered, to transport green hydrogen. With concrete projects, substantial investments and a strong political will, Germany and Algeria are writing a new page in their energy partnership, looking towards a sustainable and prosperous future.