Germany and Algeria strengthen energy ties with agreement to boost ‘green’ hydrogen production

Germany and Algeria have taken a significant step in their energy cooperation by signing a declaration of intent to establish a bilateral working group focusing on hydrogen.

The main objective of the working group, according to the German Federal Ministry of Economics and Climate Action (BMWK), is to promote the framework conditions for the production, storage and transport of green hydrogen and its derivatives. This bilateral initiative not only aims to strengthen energy security in Europe, but also to actively contribute to the implementation of the Paris Climate Agreement. According to the plans outlined, Algeria aims to export 10 % of the EU’s needs by 2040.

Federal Minister of Economics and Climate Protection Robert Habeck underlined the importance of this energy partnership, stressing that Germany is ready to support Algeria’s efforts to increase the production of green hydrogen and diversify its energy matrix towards renewable sources such as solar and wind energy. In addition, Habeck emphasised the potential of Germany and the European Union as potential buyers of green hydrogen, highlighting the need to establish favourable technical and economic conditions for supply between Algeria and Europe.

Pilot plant

So much so that the agreement includes the creation of a 50 MW green hydrogen pilot plant in Oran, Algeria, with a contribution of 20 million euros from the German government. In addition, Germany has allocated around 9 billion euros for hydrogen technology development and the promotion of international partnerships, with a substantial part coming from the Recovery and Resilience Funds of the Next Generation EU programme.

In 2023, the two countries discussed a project to convert and expand an existing pipeline corridor to transport hydrogen from Algeria through Tunisia, Italy and Austria to southern Germany. On that occasion, Algerian and German leaders highlighted the potential of these relations, particularly in areas such as renewable energy, hydrogen and natural gas.

Source: El periódico de la energía