A scientific study explains Europe's enthusiasm for Algerian green hydrogen: the country's enormous potential unveiled

According to the study authors, the results of which were made public on Friday, green hydrogen production from photovoltaic energy offers significant potential in various regions of Algeria, both in the north and south of the country. "The country's diverse geography and climate, spanning sunny desert areas and a temperate northern coastline, offer a solid basis for large-scale renewable energy projects," say the study editors.

Although the findings of this scientific study highlight the enormous potential of the country's southern region, with its year-round sunshine, the study's authors suggest that the country's northern region should also be considered for green hydrogen production projects. "The results reveal that desert regions such as Tamanrasset and Adrar have the highest potential for photovoltaic electricity production, generating 33.5 Gwh/year and 32.9 Gwh/year respectively.

This translates into green hydrogen production capacities of 679 tons/year and 668 tons/year, compared with 29 GWh/year and 26.6 GWh/year of solar electricity in Tlemcen and Skikda respectively, giving green hydrogen yields of 589 tons/year and 539 tons/year", reads the document. Compared to other countries such as Australia and Germany, Algeria has significant potential exceeding the capacities of the countries in question, including 361 tonnes per year for Germany and 382 tonnes per year for Australia.

Why the north of the country?

Admittedly, the potential for solar energy production in the southern country is greater than in the north. However, the decision to locate the infrastructure in the North can be explained by several factors cited in the study. The first relates to the solar energy production potential of the northern region (29 GWh per year), which is now not far behind that of the southern region (33.2 GWh per year). The second factor cited by the researchers relates to the availability of water resources in the north of the country to supply the various hydrogen production units, relying on seawater and wastewater treatment. "In the south of the country, water resources are non-renewable, which means that they need to be preserved for other uses, particularly in agriculture", they explain, suggesting that optimum use be made of the country's wastewater treatment plants, which have a capacity of 1.8 billion m3 per year and are currently operating at 30% capacity, representing an annual production of 600 million m3. The other key cited in the document to explain the economic choice of the northern region as a location for green hydrogen production projects is the availability of transport infrastructure and proximity to markets. "While desert regions offer high solar and hydrogen production, northern regions offer a strategic advantage due to their proximity to European markets. The existing infrastructure enables efficient export to European markets, offering a strategic advantage in green hydrogen trading", adds the same source.

Economic viability

In addition, Algeria's green hydrogen production will be destined for the European market, enabling the country to "make a huge profit with prices of up to 5.6 dollars per kg" compared with production costs estimated at between "1.68 dollars to 1.70 dollars/kg in the south of the country and 1.92 dollars to 2.70/kg dollars in the north of the country". "These costs are significantly lower than those in Germany, where the cost of production is $3.11/kg, and $2.94/kg in Australia", the document states.