Algeria positioned as premier green hydrogen hub for Europe, says new study

Algeria can produce green hydrogen at a competitive cost ranging between €4.6 and €5.2 per kilogramme, according to new research published by Applied Energy. 

The research noted that the North African country has the technical capacity to establish large-scale solar and electrolysis pathways capable of exporting up to 10mn tonnes of green hydrogen annually. The volume aligns precisely with the EU's REPowerEU target, which projects an import demand of 10mn tonnes of green hydrogen per year by 2030.

Algeria’s state-owned energy major Sonatrach is spearheading the country's hydrogen development strategy by partnering with European consortia on the SoutH2 Corridor, a planned 3,300-kilometre pipeline network designed to transport up to 4mn tonnes of green hydrogen annually from the Algerian desert through Tunisia and Italy to central Europe by 2030.

Spanning 2.38mn square kilometres, of which 80% is desert, Algeria has some of the highest solar radiation levels globally, averaging up to 6.6 kilowatt-hours per square metre daily in its southern territories. The country aims to install 13.5GW of solar capacity by 2030 as part of a wider national strategy to achieve 15,000MW of renewable energy by 2035. 

The study used an advanced spatial atlas to demonstrate that utilising tilted solar panels optimises hydrogen yields and lowers production costs. The proposed export model relies primarily on dedicated pipelines directly to Europe, using seawater desalination to supply the necessary electrolysis infrastructure without depleting local resources.