Algeria’s Sonatrach group and Spain's Cepsa kicked off Monday a project to produce green hydrogen and derivatives in the North African country.
The move signals that both countries are ready to overcome their sharp political differences which arose in 2022 when Madrid endorsed the Moroccan autonomy plan in Western Sahara where Algeria demands a sovereign state.
Algerian Minister of Energy and Mines Mohammad Arkab attended the signing ceremony of the memorandum of understanding that contributes to the decarbonization goals set by the two companies, the Ministry stated on its official site.
It said the project will allow the export of hydrogen to Spain through existing infrastructure or new means.
Algeria is Spain's main supplier of gas, facilitated by two pipelines under the Mediterranean.
On Monday, the project was signed by President of Sonatrach Group Rachid Hachichi and CEO of Cepsa Maarten Wetselaar.
According to the state-owned Algerian company, the project aims to conduct the necessary studies and assess the feasibility and profitability of an integrated project for the production of green hydrogen.
“The project includes the completion of an electrolysis plant with a capacity of 50 to 200 MW for the production of green hydrogen and the construction of a hydrogen production plant by electrolysis, solar and wind power plants to supply the electrolysis with renewable energy, a methanol and/or green ammonia production plant, as well as storage, transport and other ancillary facilities necessary for the commercial operation of the project,” Sonatrach said.
The joint agreement between Algeria and Spain came at the opening of the 12th edition of the Africa & Mediterranean Energy & Hydrogen Exhibition and Conference (NAPEC 2024) held at the Oran Convention Center (CCO) in the Algerian capital.
Arkab emphasized that the government is planning to implement major energy investments without abandoning fossil fuels, particularly natural gas, which he described as a fundamental fuel to accompany the global energy transition.
Natural gas enables Algeria to ensure its energy security while meeting growing domestic demand and enhancing its role as a reliable international partner in the field of energy, he stressed.
