Algeria Targets 1.2 Million Tons of Green Hydrogen Production by 2040 via SoutH2 Corridor
Algeria aims to produce 1.2 million tons of green hydrogen annually by 2040, exporting through the 3,300 km SoutH2 Corridor to Europe. The national strategy, adopted in 2023, plans for 40 terawatt-hours of production, with 30 terawatt-hours for export. Algeria seeks to meet 10% of projected European demand, partnering with Germany, Austria, and Italy. The country is also investing in a semi-industrial hydrogen production station in Arzew, supported by Germany and the EU, while Eni plans an €8 billion investment in various energy sectors.
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In 2023, Algeria launched its national green hydrogen strategy with a goal of producing 1.2 million tons annually by 2040. The SoutH2 Corridor will facilitate exports to Europe via a 3,300 km pipeline.
The strategy includes generating 40 terawatt-hours of hydrogen, with 30 terawatt-hours aimed for export, potentially fulfilling 10% of Europe's demand. Algeria is currently developing a semi-industrial hydrogen production facility in Arzew, backed by Germany and the EU.
Additionally, Eni plans to invest €8 billion in Algeria over the next four years, focusing on hydrogen and renewable energies. Algeria ranks second in Africa for low green hydrogen production costs, but challenges remain regarding investment and export competitiveness.
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