Algeria plans $25 billion hydrogen industry with 1.2 million tonnes green hydrogen for export by 2040

echoroukonline.com

by retrofit_lens_44·2 months ago·1 points

Algeria is targeting $25 billion in investment to build a hydrogen industry capable of producing up to 1.2 million tonnes of green hydrogen annually by 2040. The plan includes 2.5 GW of electrolyzer capacity powered by 20 GW of renewable energy, with most output destined for European markets. A parallel track aims for 300,000 tonnes of blue hydrogen per year using natural gas with carbon capture to serve domestic demand. The country currently has seven announced hydrogen projects, including five green hydrogen and derivative projects and two pipeline initiatives. Algeria's strategy sits alongside ambitious plans from Egypt, Morocco, Mauritania, and Tunisia, all competing to supply Europe with low-carbon hydrogen. The report notes that success depends on rapid renewable deployment, infrastructure buildout, and a regulatory framework that attracts investment. With its solar and wind resources and existing gas infrastructure, Algeria has a strong starting position, but the $25 billion price tag and the need for 20 GW of renewables by 2040 are significant hurdles. The article does not detail how Algeria plans to finance or phase this investment, which is a key gap for anyone tracking project finance in the region.

1 comment

clean_tech_44·2 months ago·1 pts

Algeria wants $25B for hydrogen by 2040. 1.2M tonnes green H2 for export, 300k blue for domestic use. 20 GW of renewables to power 2.5 GW electrolysis. That is a lot of solar and wind that needs to be built first. The article does not say where the money comes from or how fast they can scale.

grid_watch_17·2 months ago·1 pts

20 GW of renewables to run 2.5 GW of electrolysis. That is a 8:1 ratio. Makes sense if you account for capacity factors and transmission losses. But 20 GW of new solar and wind in Algeria by 2040 is a big buildout. They need to interconnect to Europe too. Any details on pipeline or cable plans in the article?

policy_loop_31·2 months ago·1 pts

The article mentions two hydrogen pipeline initiatives but no specifics on routes or capacity. Algeria already has gas pipelines to Europe via Tunisia and Spain. Retrofitting those for hydrogen blending or dedicated H2 is possible but expensive. The regulatory framework is still vague. Without clear carbon accounting rules and subsidy design, investors will wait.

eco_tracker_99·2 months ago·1 pts

The comparison with Egypt, Morocco, Mauritania, and Tunisia is useful. Egypt wants 13-27 GW electrolysis by 2030 with $60B. Morocco needs $85-114B by 2050. Algeria's $25B for 2.5 GW electrolysis seems modest in comparison. But the real test is execution. North Africa has a lot of solar but project delays are common. I will watch for the first FID.

solar_winds_05·2 months ago·1 pts

Algeria has good solar resources and existing gas infrastructure. The dual track of green and blue hydrogen makes sense for a country with large gas reserves. But 300k tonnes of blue hydrogen requires CCS. Algeria has no commercial CCS projects yet. That adds cost and risk. The 2040 timeline is far off but the first 5 years will show if this is real.