Algeria-Germany: A Bilateral Experimental Project for the Production of Green Hydrogen in Arzew

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The Minister of Energy and Mines, Mohamed Arkab reported Thursday in Algiers, the preparation for the realization of an experimental project between Algeria and Germany for the production of green hydrogen in Arzew ( Oran), as part of the action plan in this area between the two countries.

The announcement was made in a joint statement to the press, with the Vice-Chancellor of Germany and Federal Minister of Economy and Climate, Robert Habeck, following the signing of several agreements between the two parties and work of a round table dedicated to the debate on cooperation issues of common interest, such as renewable energies and the development of the H2 Southern Corridor.

In this context, the minister indicated that an action plan has been put in place concerning the development of hydrogen between Algeria and the German Government, through technical coordination teams between Sonatrach and German companies, to determine the ways and means of its development in Algeria, and which will be done through the realization of an experimental project for the production of green hydrogen on the Sonatrach site in Arzew in the wilaya of Oran, with a capacity of 50 megawatts with a contribution from the German government of 20 million euros.

This project, which constitutes the starting point for the development of hydrogen with the German Government, will be followed, according to the minister, by several projects to produce this material in Algeria and market it in Germany and Europe, through the Southern Corridor H2 project which consists of the construction of a hydrogen transport gas pipeline via the Mediterranean Sea, which is currently under study between Germany, Austria, Italy, Tunisia and Algeria.

“To do this and shortly, a first meeting will be held between the ministers concerned by this corridor, during which decisions will be taken for the development and implementation of this project,” said Mr. Arkab who reports that “a reflection will be initiated to create a second direct pipeline from Algeria to Europe for the transport of green hydrogen”.

The minister also recalled that the project to construct this hydrogen transport pipeline across the Mediterranean Sea had the agreement of the European Commission, stressing the need to intensify efforts to carry out technical-economic studies. in-depth, necessary for the effective launch of its implementation within the framework of a long-term win-win partnership.

Regarding the round table whose work took place behind closed doors, several themes were raised, according to Mr. Arkab, such as energy and the production of green hydrogen, in particular renewable energies and the means of their development in Algeria, Germany being considered a pioneer country in this field.

In this regard, the minister expressed Algeria’s desire to benefit from German technology and its progress in this area, stressing that “Algeria is in a phase of energy transition and needs this technological support. “.

In turn, the Vice-Chancellor of Germany and Federal Minister of Economy and Climate affirmed that the signing of a joint declaration of intent on cooperation in the field of hydrogen constitutes “a concrete partnership between the two countries and aims to promote cooperation in the field of renewable energies.

In this context, Mr. Habeck indicated that Germany needs to work with Algeria and seeks to develop opportunities to make joint investments, in several economic areas, particularly in renewable energies and gas supplies.

As for cooperation in the field of renewable energies, the Vice-Chancellor of Germany highlighted the need to build a new common infrastructure and to create new opportunities for the production of renewable energies and the transformation of this energy into hydrogen. Green.

In this context, Mr. Habeck praised the role of Algeria which, according to him, constitutes “a privileged partner for Germany and for Europe thanks to its excellent potential and its important infrastructure such as the transport pipelines of natural gas crossing the Mediterranean Sea.

“The large delegation accompanying me during this visit came to strengthen the partnership between the two countries in several areas and create more opportunities to develop investment projects, but also organize exchange and training programs. to boost bilateral cooperation per the political commitments and objectives outlined,” he added.

The round table was attended by a large delegation made up of executives from the German Ministry of Economy and Climate and several managers from the economic sector, heads of large German energy companies, in addition to the participation of executives from the sector of energy in Algeria, CEOs of the Sonatrach and Sonelgaz companies and heads of agencies and organizations in the sector.

On the sidelines of the round table, the Minister of Energy and Mines the Vice-Chancellor of Germany, and the Federal Minister of Economy and Climate, signed the joint declaration of intent to create a group bilateral work on hydrogen to strengthen investments in the public and private economic sectors concerned by the development of hydrogen in both countries.

The two parties chaired the signing ceremony of a medium-term natural gas supply contract between the national hydrocarbon company (Sonatrach) and the German company “VNG Handel & Vertrieb GmbH”.

On this occasion, a memorandum of understanding was signed between Sonelgaz and the German Federal Association of the Solar Industry (BSW-Solar) to strengthen national capacities in the technical field through the exchange of technical expertise which would make it possible to master all the know-how in the medium term, with a view to the manufacturing and local integration of equipment in the field of solar energy.

Another memorandum of understanding was signed between a private Algerian company and a German company, specializing in the production of batteries intended for the renewable energy sector, a partnership established for ten (10) years.