OAPEC commends Algeria for its progress in green hydrogen

In its latest report published on Monday, the Organisation of Arab Petroleum Exporting Countries (OAPEC) highlighted Algeria's efforts to develop green hydrogen, a move that could strengthen its role as an energy partner for Europe.

In its report entitled "Developments in new and renewable energies and issues relating to energy transition and climate change", the organisation praised the "remarkable" developments seen in Arab countries, including Algeria, in the field of green hydrogen, which is considered a strategic solution to support the transition to a low-carbon model.

In this regard, the report praised the efforts being made by Algeria, where work is underway to set up a semi-industrial plant for the production of green hydrogen and its derivatives with a capacity of 50 MW in Arzew, in addition to finalising the legal and institutional framework for hydrogen-related activities, with a view to attracting more investment across the various stages of the value chain.

A strategic partnership with Europe

The report also noted Algeria's continued strengthening of its role as Europe's "strategic partner" in green hydrogen, with "all the assets necessary to become a leading supplier of clean energy", including abundant solar and wind energy resources, modern infrastructure and direct pipelines connecting it to European markets.

In this context, the report welcomed the multilateral South H2 hydrogen corridor project, officially announced in January 2025, which aims to transport 4 million tonnes of green hydrogen annually from Algeria to Europe, representing nearly 10% of Europe's projected demand by 2040.

The Organisation stated that the efforts made by several Arab countries in energy transition projects constitute "an unavoidable option", reflecting an increased commitment to reducing emissions and strengthening energy security.

Regional momentum driven by the energy transition

In this context, the report highlights the growing global interest in clean and sustainable energy, which has led many Arab countries to adapt to changes by launching major new infrastructure projects and increasing investment in this area.

The renewable energy sector (mainly comprising solar, wind and hydro power) has attracted growing global interest in recent years, driven by an urgent need to tackle climate change. For example, China has maintained its leadership with an estimated combined capacity of 3.89 terawatts by the end of 2025, the report adds.

Accelerated investment in the Arab world

This global trend has led Arab countries to maintain their policy of supporting clean energy to contribute to economic diversification, ensure security of supply, reduce emissions and enhance the efficient use of resources.

In its report, the Organisation highlighted the "tangible progress" made in several countries that have rushed to invest in renewable energy, such as Saudi Arabia, Kuwait, Egypt and Algeria, with the latter currently in the process of receiving the first part of its 3,200-megawatt project.