Algeria's Green Hydrogen Project for Steel Production in Oran
Key Ideas
  • Algeria partners with US renewable energy specialist and steel maker for a green hydrogen project to power steel production in Oran.
  • The project includes feasibility studies followed by project development targeting 15GW of renewables by 2026, aligning with energy transition goals.
  • Algeria aims to save fossil fuels for export by increasing renewable sources to 27% of its energy mix by 2026 and potentially supplying 40% of Europe's hydrogen import target by 2030 through the SoutH2 Corridor project.
  • The initiative showcases Algeria's commitment to green hydrogen and renewable energy, contributing to the country's economic and environmental sustainability goals.
Algeria has signed a memorandum of understanding with a US renewable energy specialist, Hecate Renewable Energy, and steel maker Tosyali Algerie to collaborate on a green hydrogen project to power steel production in Oran, northwestern Algeria. The project, initiated by Sonatrach, the state-owned oil company, involves two phases. The first phase encompasses feasibility studies to assess profitability, while the second phase focuses on actual project development in line with the partners' energy transition objectives. Tosyali Algerie, a prominent steel manufacturer in Africa, operates facilities in the port city of Oran. Algeria, a significant gas producer, is strategically moving towards renewable energy and green hydrogen projects to preserve fossil fuels for export. The country aims to boost renewable sources to 27% of its energy mix by 2026, with a target of generating around 15 gigawatts. Additionally, Algeria is part of a partnership involving six European and Algerian energy companies working on large-scale green hydrogen production and its transportation to Europe through the ambitious SoutH2 Corridor project. The proposed 3,300-km hydrogen pipeline seeks to connect North Africa to Italy, Austria, and Germany, potentially meeting 40% of Europe's hydrogen import target by 2030. This initiative not only highlights Algeria's efforts to promote green hydrogen and renewable energy but also emphasizes the country's commitment to sustainable economic and environmental practices. By pursuing such projects, Algeria aims to play a significant role in the global energy transition towards cleaner and more sustainable energy sources.
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