Germany is placing green hydrogen at the center of its energy transition strategy as part of its goal to decarbonize industry. According to the German public broadcaster ARD, Berlin views hydrogen as a key solution to replace fossil fuels, particularly in the steel, chemical, and heavy transport sectors. However, given the country’s limited renewable energy capacity, domestic production is unlikely to meet demand, making imports a necessity.
In this context, Algeria is considered one of the most promising potential suppliers for Germany. As of April 2024, Algeria’s installed renewable energy capacity stood at 400 megawatts, with plans to expand it to 15,000 megawatts by 2035. This increase will form the foundation of the country’s green hydrogen production infrastructure.
Algeria’s Role in Green Hydrogen Production
Algeria’s advantages for Germany can be summarized in three areas: the high solar energy potential in the Sahara, geographical proximity to the European market, and the possibility of adapting existing natural gas pipelines for hydrogen transport. Experts from the Fraunhofer Institute note that converting these pipelines could provide significant cost and time advantages.
In January 2025, Germany, Algeria, Italy, Austria, and Tunisia signed a declaration of intent for the “Southern Hydrogen Corridor” project. The planned route will start in Algeria, pass through Tunisia and Italy, and eventually reach Germany, aiming to become a key part of Europe’s hydrogen supply chain.
Energy Security and Geopolitical Considerations
The Berlin government has stated that it aims to diversify supply to strengthen energy security and reduce reliance on a single source. Former Economy Minister Robert Habeck’s visit to Algeria was seen as an important step in this strategy, while the current administration emphasizes that hydrogen imports are critical for achieving Germany’s climate targets.
In Algeria, preparations are underway on the industrial side. Some facilities in Oran plan to convert their current ammonia production into renewable energy–based “green ammonia” and eventually into green hydrogen. While large-scale industrial production is expected around 2030, a fully developed hydrogen market does not yet exist in Europe.
From a geopolitical perspective, Algeria maintains relations with various global actors, while cooperation with Europe in the energy sector is steadily strengthening. Experts suggest that the first large-scale shipments of green hydrogen from Algeria to Germany are unlikely before 2035. Nevertheless, infrastructure investments and diplomatic engagement signal the start of a new energy-focused strategic era between the two countries.
