- Plan to power steel production
- First phase is feasibility studies
- Targeting 15GW of renewables by 2026
Algeria has signed a memorandum of understanding with a US renewable energy specialist to build a green hydrogen project to power steel production.
Sonatrach, Algeria’s state-owned oil company, said on Tuesday it had signed the deal with Hecate Renewable Energy, based in Chicago, and steel maker Tosyali Algerie.
The hydrogen agreement consists of two phases, the first of which involves studies to evaluate feasibility and profitability, Sonatrach said in an online statement.
Phase two will focus on actual project development, aligning with the energy transition goals of the partners. Tosyali is one of Africa’s largest steel manufacturers and has facilities in the port city of Oran, northwestern Algeria.
Algeria, a major gas producer, plans to develop renewable energy and green hydrogen capacity as part of a strategy to save fossil fuels for export.
The country aims to increase the share of renewable sources in its energy mix to 27 percent by 2026 with the production of around 15 gigawatts.
In 2024, six European and Algerian energy companies joined forces to assess the feasibility of large-scale green hydrogen production in Algeria and transport to Europe through the proposed SoutH2 Corridor project.
The 3,300-km hydrogen pipeline aims to connect North Africa with Italy, Austria, and Germany, potentially supplying 40 percent of Europe’s hydrogen import target by 2030.
