Algiers, Algeria— Sonatrach of Algeria and VNG AG of Germany have signed a memorandum of understanding for the construction of the first green hydrogen plant in the North African country.
The MoU was signed on the sidelines of the fourth Algerian-German Energy Day in Algiers. The deal was signed between Sonatrach, Algeria’s state-owned oil company, and the German gas company VNG AG.
According to the Algerian authorities, the proposed plant will have a production capacity of 50 MW.
Also read: Algeria’s Sonatrach starts production in new gas field
The MoU aims “to explore opportunities for cooperation for the realization of projects in the field of hydrogen and of green ammonia to be exported” to Germany, reads a statement from Sonatrach.
“The first step of this project is focused on feasibility studies on the hydrogen value chain, from production and transport to commercialization. This will allow (us) to assess the potential of commercial projects to be jointly developed,” it said.
Also read: Sonatrach plans $40bn investment
Algerian Energy Minister Mohamed Arkab said this is the “first project” of its kind in Algeria. He said the plant will produce 50 MW of electricity from solar energy.
“This project will allow Algeria to benefit from the experience of Germany, whose industry is at the forefront in the field of new and renewable energies,” he added.
The German undersecretary to economy and climate action, Franziska Brantner, who attended the signing ceremony, said: “We will carry out this project for the welfare of Algerian and German future generations.”
