Algeria’s state-owned Sonatrach and Spain’s Cepsa have signed a memorandum of understanding for the construction of a green hydrogen project in Algeria targeting the European market.

The two sides signed the MoU in Algiers on Monday for a two-phase implementation with feasibility study in phase one followed by project execution in phase two, Sonatrach said in a statement.

The project comprises electrolyser, solar and wind power plants, methanol and green ammonia production units besides storage and transport facilities.

“The project to be executed in partnership with Cepsa will contribute to achieving the targets set by the two companies for slashing carbon emissions,” the statement said without providing further project details.

(Writing by Nadim Kawach; Editing by Anoop Menon) (anoop.menon@lseg.com)

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