Cepsa and Sonatrach join forces on green hydrogen supply from Algeria to Europe

Spanish Cepsa and Algerian Sonatrach have signed a memorandum of understanding (MoU) to jointly carry out a feasibility study for the development of an integrated project for green hydrogen production and derivatives in Algeria, mainly aimed at supplying the European market.

According to the companies, the MoU envisions the implementation of a green hydrogen project in two phases, the first of which would focus on conducting studies to assess the feasibility, opportunity and profitability of the project, while the second phase would be dedicated to the development of the project.

The integrated development of the project includes the construction of an electrolysis hydrogen production plant, solar and wind plants to supply renewable energy to the electrolyzers, a methanol and/or green ammonia production plant, as well as necessary facilities for storage, transportation and other auxiliary facilities for the commercial operation of the project.

It is worth noting that Sonatrach and its compatriot Sonelgaz also signed an MoU with Germany’s VNG, Austria’s Verbund and Italy’s Snam and SeaCorridor to jointly examine the feasibility of a project for large-scale hydrogen production in Algeria and its export via planned SoutH2 Corridor to Italy, Austria and Germany.

Specifically, the partners agreed to explore the technical and economic feasibility of a large-scale project along the entire green hydrogen value chain. To note, the SoutH2 Corridor is a planned hydrogen-ready pipeline corridor connecting North Africa to central Europe.