Algeria is engaged in discussions with Germany to establish itself as a major supplier of green hydrogen for Europe’s largest economy, it is reported, citing a press release from the Ministry of the Economy in Berlin, published during meetings between German and Algerian officials. (Illustration: Algerian Foreign Minister Ahmed Attaf and German Foreign Minister Annalena Baerbock in June 2023.)
The objective is to meet up to 10% of European demand for green hydrogen, like the H2Med gas pipeline project linking Spain and Portugal.
Discussions between Berlin and Algiers will focus on the conversion and extension of existing gas pipelines, which will pass through Tunisia, Italy, and Austria, to ultimately supply green hydrogen to southern Germany, said the ministry without providing a precise timetable.
Germany, which recently abandoned its nuclear power plants, relies on coal and gas for its energy-intensive industrial sector, and green hydrogen is seen as a crucial part of the transition to more energy sources. clean.
Following Russia’s reduction of gas supplies following the war in Ukraine, Algeria has emerged as a solution to Europe’s gas shortages, with Italy and Spain having already agreed to increase their imports from this North African country.
Spanish grid operator Enagás is eyeing potential volumes from North Africa in the 2030s, its CEO Arturo Gonzalo Aizpiri said last week as cited by Bloomberg News last week.
This is part of the country’s hydrogen planning until 2040, aiming to connect the industrial zone near the Strait of Gibraltar to the gas pipeline network.
The design includes additional capacity for future volumes, and if demand matures sooner than expected, that connection could happen sooner, Aizpiri said.
Green hydrogen is recognized by the European Union as a key resource for the decarbonization of industries such as refining and fertilizers.
Despite its potential, the global market for green hydrogen remains relatively small due to its higher production costs than the more commonly used “gray” hydrogen, made from fossil fuels.
Germany is poised to become Europe’s largest hydrogen importer, with 70% of clean hydrogen coming from abroad by the end of the decade. The country has already outlined plans for a hydrogen network and is accelerating infrastructure development to achieve this goal.
