On February 1, 2024, the Renewable Energy and Energy Efficiency Commission (CEREFE) in Algeria published the national strategy for hydrogen development in the country. CEREFE is a public institution, set up by the Algerian Prime Minister on March 10, 2021, to contribute to the national and sectoral development of renewable energies and energy efficiency in Algeria.
Currently, hydrogen is mainly produced from natural gas in Algeria. It is used in the chemical industry as a feedstock for ammonia and methanol production. In the petroleum industries, hydrogen is used as a reagent in the refining processes of crude oil. The strategy highlights the potential Algeria has as a regional and international key supplier for the development of renewable hydrogen. The key assets include:
•A key geographical location with abundant renewable energies: Algeria is among the largest areas in the world with considerable solar energy availability and significant wind energy, which could be used to produce renewable hydrogen. In addition, the country is close to Europe with a maritime coastline of over 1,200 km and port infrastructure which could be developed for transportation of renewable hydrogen and its derivatives. However, the existing infrastructure must be further upgraded and modernized for hydrogen use, and investment in new infrastructure is needed
•An extensive and robust electricity network: Algeria has three electricity networks in continuous expansion. One of the networks covers a large part of the national territory with interconnections with neighboring countries. The existing network can be adapted for distribution of renewable electricity
•An important gas pipeline network connecting Algeria to Europe: the current national and transnational gas pipeline network offers prospects for the export of hydrogen to the European market, in the form of a mixture with natural gas. The network could be expanded with the installation of new gas pipelines
•Growing industries: Algeria has extensive experience in production, liquefaction and transportation of natural gas as well as the production of grey hydrogen for the oil and gas company, Sonatrach's refining. Other international companies operating in Algeria, such as Linde Gaz, Air Product and Siemens have experience in the manufacturing of electrolyzers and production of hydrogen. These capabilities can be leveraged to further develop the production and use of hydrogen across different industries
•Competitive hydrogen production cost: According to the study in the strategy, the cost of renewable hydrogen is competitive compared to other regions thanks to the multiple assets Algeria has. The graph below highlights this.
Algeria renewable hydrogen production cost
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Source: National Hydrogen Development Strategy of Algeria
2023-2040 vision
According to the national strategy, between 30-40 terawatt hours (TWh) of hydrogen, in the form of gas, liquid or its derivatives, can be produced and exported to Europe by 2040. An additional 10 TWh of blue hydrogen (production of hydrogen from natural gas with carbon capture technology) is expected to be produced for domestic use in Algeria.
To achieve the 2040 goal, the country will initially carry out pilot projects of 2 megawatt (MW) to 50 MW of electrolysis capacity to test and evaluate different technologies to produce hydrogen and its derivatives. The most suitable technology will then be financed in the medium and long term, for hydrogen production and use in the national context.
For the production of renewable electricity, only solar and wind energy were considered capable of producing over 1 million tonnes of renewable hydrogen production from 2040. The hypothesis used was that 70% of renewable electricity will be generated by solar energy and 30% from wind energy.
2050 vision
By 2050, at least 40 TWh of renewable hydrogen is aimed to be produced. 75% of this quantity will be exported to Europe via gas pipelines and/or by sea, in the form of renewable liquified hydrogen, ammonia, urea, methanol and ethanol. The remaining 25% (representing 10 TWh of renewable hydrogen) will be used domestically. For the transport sector, renewable hydrogen is expected to be used for heavy-duty vehicles such as trucks, urban and suburban buses, and garbage collection trucks.
The figure below illustrates the key applications to be developed in Algeria by 2050
Prospects for the development of hydrogen in Algeria
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Source: National Hydrogen Development Strategy of Algeria
Regulatory framework
A regulatory framework governing all activities linked to the production, storage, transport and use of hydrogen will be put in place during the period 2023-2025.
There will be a review and modification of certain texts of existing laws, and the related implementing texts, as well as the development of specific regulatory texts, which will address the following aspects:
•Production of hydrogen by electrolysis
•Hydrogen storage
•Transport of hydrogen by tanks and in bottles
•Hydrogen distribution stations
•Use of hydrogen in transport (in fuel cells or as fuel)
•Hydrogen injection into gas pipelines and natural gas transportation and distribution networks
•Finance incentives and mechanisms will also be considered for investment in hydrogen projects
For more information on hydrogen strategies, please refer to SGS INSPIRE reports for and for (for hydrogen or its derivatives ).