ALGIERS, Algeria (MNTV) — Algeria will require an estimated $25 billion in investment to achieve its hydrogen production goals by 2040, as the country seeks to establish itself as a major supplier of low-carbon hydrogen to European markets, according to a new report by the Energy Research Unit.
The report said Algeria’s long-term hydrogen strategy combines the development of both green hydrogen, produced using renewable energy, and blue hydrogen, generated from natural gas with carbon capture and storage technology.
The dual-track approach is designed to capitalize on the country’s vast natural gas reserves while advancing its transition toward cleaner energy.
Under the strategy, Algeria plans to install 2.5 gigawatts of electrolyzer capacity powered by around 20 gigawatts of renewable energy by 2040.
The infrastructure is expected to support annual production of between 900,000 and 1.2 million tonnes of green hydrogen, with most of the output destined for export, particularly to Europe.
In addition, Algeria aims to produce around 300,000 tonnes of blue hydrogen annually to meet domestic industrial and energy demand.
According to the report, the country has announced seven hydrogen-related projects, including five focused on green hydrogen and its derivatives, along with two pipeline initiatives intended to facilitate exports.
Together, the projects form part of Algeria’s broader objective of exporting up to one million tonnes of hydrogen each year by 2040.
The report said achieving these targets will require rapid expansion of renewable energy capacity, major infrastructure development, sustained financial investment and the introduction of regulatory measures capable of attracting both domestic and international investors.
It also highlighted growing regional competition in the hydrogen sector, noting that neighboring countries have announced ambitious investment plans.
Egypt is targeting up to 27 gigawatts of electrolyzer capacity by 2030, while Morocco, Mauritania and Tunisia are also pursuing large-scale hydrogen projects backed by tens of billions of dollars in planned investment.
Despite the competitive landscape, the report said Algeria is well positioned to become a leading player in the emerging global hydrogen market due to its abundant solar and wind resources, established natural gas infrastructure and strategic location close to European energy markets.
The report concluded that successful implementation of the strategy will depend on securing investment, accelerating project execution and building the infrastructure needed to support a competitive and sustainable hydrogen industry as demand for low-carbon energy continues to grow.
