Algeria has signed an agreement to begin a feasibility study for a new pipeline that will export green hydrogen to Europe, marking a significant development in the country’s renewable energy ambitions.
The large-scale project, named the “Southern Corridor 2,” will connect Algeria to Europe through Tunisia, extending into Germany, Italy, and Austria.
The agreement involves a collaboration between Algerian energy giants Sonatrach and Sonelgaz, alongside several European companies, spearheaded by the German firm VNG.
The project is set to boost Algeria’s role as a key supplier of green energy to Europe, as the continent seeks sustainable alternatives to fossil fuels.
In parallel with the pipeline project, Sonatrach is preparing to sign a Memorandum of Understanding with Spanish energy company Cepsa to collaborate on the production of green hydrogen, with a capacity of 200 megawatts.
This agreement also explores potential avenues for exporting the hydrogen to Spain, further strengthening Algeria’s renewable energy ties with Europe.
Algeria’s competitive edge in the green hydrogen market stems from its ability to produce the fuel at a low cost, ranging between $1.2 and $2 per kilogram, significantly lower than the current European prices, which can reach up to $6 per kilogram.
This cost efficiency positions Algeria as an attractive supplier for the European market, where demand for green hydrogen is rapidly growing.
Green hydrogen is produced through the electrolysis of water, a process powered by renewable energy sources such as solar and wind.
The environmentally friendly fuel is increasingly being used to generate electricity and as a clean alternative for powering vehicles.
With its abundant solar and wind resources, Algeria is well-placed to become a major player in the global green hydrogen market.
This latest pipeline initiative reflects the country’s broader strategy to diversify its energy exports while contributing to the global shift towards cleaner energy.
