Germany hopes for hydrogen from Algeria

The German government is looking to source hydrogen from outside Europe in the coming years. Economy and Climate Minister and German Vice Chancellor Robert Habeck, participating in a business delegation, has agreed with Algeria to set up a working group to facilitate the framework for imports.

The German government estimates that demand for hydrogen imports will reach 45 to 90 TWh a year by 2030. That is slightly less than half of projected domestic production, meaning imports could play a bigger role than expected.

“Germany and Algeria have maintained a close energy partnership since 2015. We now want to expand it and support Algeria in producing more green hydrogen in the future,” said Vice Chancellor Robert Habeck (Greens).

Algeria and Germany are therefore planning to set up a joint working group to ensure that hydrogen can flow. Algeria hopes to supply 10% of EU hydrogen demand by 2040, according to Euractiv.

“The task now is to create the necessary technical and economic conditions for hydrogen supplies between Algeria and Europe,” said Habeck, who visited the country with a business delegation.

Step by step

VNG, the second-largest gas trader in Eastern Europe, became the first German energy company to acquire Algerian gas and signed an agreement with state-owned company Sonatrach.

“This historic contract” helped strengthen “Sonatrach’s energy partnership with Europe” and “marks the start of natural gas deliveries to Germany,” Sonatrach CEO Rachid Hachichi said in a statement.

The companies did not disclose the contract’s duration or the agreed volumes.

VNG CEO Ulf Heitmüller described it in Sonatrach’s statement as a “medium-term gas supply contract” and added that his company hopes to import hydrogen as well as natural gas in the future.