The SONATRACH Group, led by CEO Nour Eddine DAOUDI, has intensified its cooperation with European partners during a major event held in Berlin. The meeting provided an update on the progress of the green hydrogen project, particularly the Algeria to Europe Hydrogen Alliance (ALTEH2A) and the SoutH2 Corridor, which aim to produce hydrogen in Algeria and export it to Europe. This project brings together major European players, including VNG AG (Germany), SNAM and Sea Corridor (Italy), and Verbund Green Hydrogen (Austria), and is based on Algeria’s vast renewable energy resources.
This strategic partnership aims to explore and develop infrastructure enabling the delivery of green hydrogen produced in Algeria to the European market, leveraging the Southern Corridor supported by the European Commission, which has classified it among the Projects of Common Interest (PCI). Initial phases of the project have highlighted the importance of international cooperation in addressing the growing demand for clean energy in Europe.
Economic stakes of green hydrogen for Algeria
Algeria, endowed with significant renewable energy potential, could play a key role in Europe’s energy transition. The project backed by SONATRACH could enable Algeria to diversify its revenue sources by becoming a major supplier of green hydrogen. Still in development, the project is expected to open new opportunities for the local industry and energy exports to a European market striving to decarbonise.
Discussions in Berlin underlined the importance of cross-border cooperation in executing such large-scale energy projects. This initiative could transform Algeria into a hydrogen hub, with considerable economic impact, particularly in terms of foreign investment and job creation across research, production, and logistics sectors.
European partners’ contributions and strategic role
SONATRACH’s European partners also play a strategic role in this project. For instance, Italy, through SNAM and Sea Corridor, and Germany, via VNG AG, contribute their expertise in gas and hydrogen transport infrastructure. Austria, represented by Verbund Green Hydrogen, positions itself as a key actor in hydrogen production and technology management. These collaborations will help build a robust value chain and optimise the project’s profitability.
Political backing from the partner countries’ governments, through bilateral agreements and support declarations, further strengthens the initiative. In January 2025, a new political declaration was signed by the governments of Algeria, Tunisia, Italy, Austria, and Germany, reaffirming their shared commitment to the success of this project.
Long-term prospects for energy cooperation
The ALTEH2A project and the SoutH2 Corridor are part of a long-term energy cooperation strategy between Algeria and Europe. The aim is to develop robust, cross-border infrastructure for green hydrogen transport while contributing to the European Union’s climate objectives. This initiative meets a rising demand for decarbonised energy and allows Algeria to assert a key role in the global hydrogen market.
Integrating green hydrogen into global energy supply chains presents SONATRACH with an opportunity to position itself in an emerging high-potential market. The project’s evolution over the coming years could reshape energy dynamics between hydrogen producers and consumers.
