Algerian state energy firm Sonatrach has signed two separate memoranda of understanding (MoU) to conduct studies for the development of an integrated project for the production of green hydrogen and derivatives in Algeria, in order to supply mainly the European market.
The first MoU is with Sonelgaz (Algeria), VNG (Germany), SNAM (Italy), SeaCorridor (Italy) and Verbund Green Hydrogen (Austria) to conduct the necessary joint studies, throughout the hydrogen value chain, to assess the viability and profitability of an integrated project aimed at producing green hydrogen in Algeria in order to supply the European market via the “SoutH2 Corridor”.
This MoU will enable the parties to jointly examine the opportunity to implement an integrated multi-stakeholder project, across the entire green hydrogen value chain, via the SoutH2 Corridor.
The SoutH2 Corridor will play a major role in reducing energy dependence on fossil fuels and promoting an energy transition towards a low-carbon and sustainable economy.
The second memorandum was signed with Cepsa. This agreement provides for the implementation of a green hydrogen project, in two phases. The first phase is dedicated to carrying out studies for the evaluation of the viability, opportunity and profitability of the project, while the second phase will be dedicated to the development of the project.
The joint development of the integrated project will contribute to the decarbonization objectives of both companies. It includes the construction of a hydrogen electrolysis production plant, solar and wind power plants to supply the electrolyzers with renewable energy, a methanol and/or green ammonia production plant as well as storage, transportation and other ancillary facilities necessary for the commercial operation of the project.