Algeria is in talks with Germany to become a major supplier of green hydrogen to Europe’s largest economy, and then modernize pipelines to reach a wider area of the continent.
The discussions aim to secure up to 10% of European demand for green hydrogen, similar to the H2Med pipeline project from Spain and Portugal, according to a statement issued by the Ministry of Economy in Berlin, which came during meetings between German and Algerian officials.
Algeria has intervened to alleviate some of Europe’s gas problems after Russia reduced gas supplies from pipelines in the wake of its war in Ukraine.
Italy and Spain signed agreements to increase imports from the North African country.
Germany, which closed its last nuclear power plants this year, relies on coal and gas to run its energy-hungry industry, as Hydrogen is considered the basis for achieving a pollutant-free sector.
The German Ministry of Economy said that the focus of the talks between Berlin and Algeria will include converting and expanding existing natural gas pipelines through Tunisia, Italy and Austria to deliver green hydrogen to southern Germany.
Meanwhile, there is no timetable for the project.
Germany isn’t alone in looking for clean energy solutions, as Spain’s energy grid operators, has expressed their readiness to obtain potential quantities of green hydrogen from North Africa in 2030.
The industrial park, located near the Strait of Gibraltar, will be connected to the pipeline network in the second phase of the country’s hydrogen delivery scheme until 2040.
The line’s design allows for spare capacity for additional volumes, and if there is demand for production sooner than expected, it may happen before that time, while the European Union is leaning toward using green hydrogen as a major way to decarbonize industries such as refining and fertilizers, its global market is currently limited; Because its more expensive than its widely used product made from fossil fuels.
Germany will become Europe’s largest importer of hydrogen, with up to 70% of the clean gas coming from abroad by the end of the decade.
The country has already rolled out a hydrogen network project, and plans to accelerate the development of this infrastructure.