To diversify its energy mix dominated by gas and oil, Algeria is now planning massive investments in the green hydrogen and solar energy segments.
Algeria plans to invest 20 to 25 billion US dollars in the production of green hydrogen, announced the director general of economic studies and forecasting at the Algerian Ministry of Energy and Mines, Miloud Medjalled, on 23 FEBRUARY.
Mr. Medjalled, who spoke on state radio, explained that these investments aim to “ develop the green hydrogen sector in order to provide complementary energy solutions ”. He also revealed that the government plans to increase its installed solar capacity by 30 to 15,000 megawatts in 2035 from just 500 megawatts currently.
The Algerian hydrocarbon giant Sonatrach signed an agreement in December 2022 with the German energy group VNG AG to build green hydrogen and ammonia plants in Algeria, based in particular on the country’s enormous potential in the field of renewable energies.
The largest African country by area, Algeria enjoys 2,000 to 3,000 hours of sunshine per year in its desert, which covers 80% of the country’s area, and whose surface temperature is the highest in the world.
In theory, this desert territory alone could generate more than 169,400 terawatt-hours (1 terawatt-hour = 1,000,000 megawatts), or 5,000 times the annual national electricity consumption, according to a report published in September 2022 by the German Friedrich-Ebert Foundation.
Algeria’s heavy dependence on hydrocarbons, which account for 93.6% of export earnings and about 50% of the state budget, has so far prevented the country from exploiting its huge energy potential. renewable.
