Algeria to Europe: Green Hydrogen Pipeline Project by Five Energy Companies
Key Ideas
- Five energy companies from Algeria, Germany, Italy, and Austria collaborate on a green hydrogen project to supply Europe via the SouthH2 Corridor.
- The project aims to potentially meet 40% of Europe's imported hydrogen demand by 2030, enhancing Europe's green energy supply and Algeria's hydrogen supplier status.
- Germany and Algeria also established a hydrogen task force to develop infrastructure and production capabilities, contributing to the region's energy transition.
- Despite ambitious EU targets, a report by the European Court of Auditors raised concerns about the feasibility of achieving the set hydrogen production and import goals.
Five energy-focused companies, including Algeria's Sonatrach and Sonelgaz, along with firms from Germany, Italy, and Austria, have signed a Memorandum of Understanding (MOU) to explore the feasibility of an integrated green hydrogen project in Algeria. The project aims to produce green hydrogen in Algeria to cater to the European market through the SouthH2 Corridor. This initiative includes a 3,300km pipeline that could potentially supply 40% of Europe's imported hydrogen demand by 2030, contributing significantly to Europe's green energy needs.
The collaboration between the companies not only benefits Europe's hydrogen supply chain but also strengthens Algeria's position as a major hydrogen supplier. Furthermore, in February, Germany and Algeria announced the establishment of a hydrogen task force to enhance hydrogen infrastructure and production capabilities in the region, aligning with the global shift towards sustainable energy sources.
However, despite the promising developments, a report by the European Court of Auditors (ECA) highlighted concerns regarding the EU's hydrogen targets. The report revealed that the EU's objectives of producing and importing 20 million tonnes of green hydrogen by 2030 might be unattainable. The ECA expressed doubts about the feasibility of these targets and criticized the European Commission for not conducting thorough analyses before setting such ambitious goals.
Overall, while the collaboration on the green hydrogen project signifies a positive step towards sustainable energy practices and regional cooperation, challenges persist in meeting the ambitious hydrogen targets set by the EU.