The Sonatrach Group and the Tosyali Iron and Steel Company-Algeria have sealed a deal to produce green hydrogen in Algeria.
The Memorandum of Understanding (MoU) signing ceremony was was attended by Mr. Rachid Hachichi, President & CEO of SONATRACH Group, and Mr. Fuat Tosyali, President of the Board of Directors of TOSYALI Iron Steel Industry Algeria SPA.
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National hydrogen strategy
The agreement will involve a joint feasibility study to produce green hydrogen in Algeria using renewable energies. The green hydrogen produced will be utilized in the manufacture of green steel at TOSYALI’s steel complex, a leader in the steel industry.
This partnership aligns with Algeria’s national hydrogen strategy, which aims to reduce natural gas consumption and greenhouse gas emissions. The successful implementation of this project will mark a significant step towards substituting fossil fuels with green hydrogen in Algerian industry.
Despite Algeria’s reliance on gas and oil resources for power generation, the country has gradually increased its renewable energy potential in recent years. The Algerian government has set ambitious renewable targets. By 2030, the country aims to reach a clean energy capacity of 22,000MW. It expects to generate most of its renewable power through solar photovoltaic technology, with a capacity of around 14,000 megawatts, followed by wind energy at 5,000MW. To reignite the country’s energy transition, in 2021, the Algerian government made a new push to develop strategic partnerships in the field of renewable energies with multiple countries.