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Four German companies are now interested in developing the basic infrastructure for green hydrogen production on the Algerian market. In recent weeks, the state-owned Sonatrach, which oversees the national green hydrogen program, has held several meetings with German companies expressing their appetite for investment in this field.
VNG, Bosch, Bayonets, Siemens and Thyssen are among the major German groups interested in partnership projects with Sonatrach in the field of decarbonisation and green hydrogen production. Germany is the gateway to the SoutH2 and H2med transport corridors for green hydrogen produced in Algeria.
Algeria has considerable natural resource potential, with sunshine levels ranging from 2,600 h/year in the north to 3,500 h/year in the south, making it ideal for developing various photovoltaic and thermal electricity generation projects. In this respect, the country is counting on developing solar electricity with a production of 15 GW, which should play a crucial role in developing the green hydrogen sector.
Algeria's natural potential and geographic proximity to the European market make it a coveted destination for energy groups from the Old Continent, particularly in producing renewable energies. With its competitive production costs and wealth of natural resources, Algeria is now considered a battery for Europe and renewable energies. This explains the interest shown by European Union countries in investing in this field in Algeria, where an ambitious program is underway to produce 40 ThW of green hydrogen or more than 10% of the European Union's needs.
In addition to exporting green hydrogen to the Old Continent, Germany in particular, Sonatrach and German companies are also linked by contracting for the natural gas supply, which is seen as a fuel to accompany the global energy transition.