Algeria is in a good position to produce green and blue hydrogen as clean sources of energy given its vast area and the abundance of gas, a local newspaper said on Monday, quoting government sources.

The North African Arab country, which is an OPEC member, is already on track to enter such industry following the announcement of a “national strategy for the development of hydrogen resources” by the Energy Ministry in early 2023, the Arabic language daily Elkhabar said, citing Ministry sources.

“Algeria possesses basic elements, including solar power capabilities and massive resources of natural gas, which put it in a good position to produce green hydrogen and perhaps blue hydrogen at competitive costs,” the paper said, adding that the country can become a reliable exporter to Europe in line with new partnerships that are being formulated.

According to the sources, costs of one kg of produced hydrogen are estimated at around $4 globally while they could be around $2-2.5 in Algeria.

“This means Algeria has the potential to become a hydrogen exporter to North Europe at competitive prices,” a source said, adding that Algeria’s needs of energy from hydrogen projects are estimated at 80 gigawatts in 2030.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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