In response to the H2Med project, which involves France, Spain and Portugal (and possibly Germany), Italy has signed an agreement with Algeria. A country with great potential and which also interests… Germany.

On 23 January, the oil group ENI signed an agreement with Sonatrach in Algiers. A deal concluded in the presence of the Italian Prime Minister, Giorgia Meloni. She declared that “Algeria can become a leader in Africa and the world, and Italy is the gateway for supplying this energy to Europe.”

The agreement provides for the production and export to Europe of green or blue hydrogen. A new gas pipeline will be built between the two countries, with a capacity of 8 to 10 billion cubic metres/year to transport gas, ammonia and hydrogen. The Galsi project will cover 837 km, of which 565 km will be offshore through the Mediterranean Sea, and 272 km onshore. It will cost 2.5 billion dollars.

The President of the Republic, Abdelmadjid Tebboune, said that the new gas pipeline project between Algeria and Italy was of “paramount importance” and “will be completed in little time.”

This is a great opportunity for Algeria, which, alike other Arab countries, is seeking to become a producer of alternative energies, in particular green hydrogen thanks to abundant sunshine. The country has already concluded a partnership with Germany, which is seeking to diversify its energy sources since the war in Ukraine. An agreement was signed on 22 December between Sonatrach and the German company VNG, to deliver hydrogen from 2030. The two parties are also negotiating the construction of a green hydrogen plant in Algeria, with a production capacity of up to 20 MW, which should be operational by 2024.

Article written by Laurent Meillaud and translated by Logan King