Germany In Talks To Import Green Hydrogen From Algeria Via Pipeline

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Algeria is engaged in discussions with Germany to establish itself as a major supplier of green hydrogen for Europe’s largest economy, Bloomberg News reported Monday, citing a statement from the Economy Ministry in Berlin, released during meetings between German and Algerian officials.

The aim is to fulfill up to 10% of European green hydrogen demand, similar to the H2Med pipeline project connecting Spain and Portugal.

The discussions between Berlin and Algiers will focus on converting and extending existing natural gas pipelines, which would pass through Tunisia, Italy, and Austria, ultimately supplying green hydrogen to southern Germany, the ministry said without providing a specific timeline.

Germany, having recently phased out its nuclear power plants, relies on coal and gas for its power-hungry industrial sector, and green hydrogen is seen as a crucial element in transitioning to cleaner energy sources.

Following Russia’s reduction of pipeline gas supplies in the wake of the war in Ukraine, Algeria has emerged as a solution to Europe’s gas shortages, with Italy and Spain already agreeing to increase their imports from the North African country.

Relevant: Germany Is Planning A Core Hydrogen Pipeline Network By 2032

Spain’s grid operator, Enagás (BME: ENG), is considering potential volumes from North Africa in the 2030s, CEO Arturo Gonzalo Aizpiri told Bloomberg News last week.

This forms part of the country’s hydrogen planning up to 2040, seeking to connect the industrial area near the Strait of Gibraltar to the pipeline network.

The design includes additional capacity for future volumes, and if demand matures earlier than anticipated, this connection could occur sooner, Aizpiri said.

Green hydrogen is recognized by the European Union as a key resource for decarbonizing industries like refining and fertilizers.

Despite its potential, the global green hydrogen market remains relatively small due to its higher production costs compared to the more commonly used “gray” hydrogen made from fossil fuels.

Germany is poised to become Europe’s largest hydrogen importer, with a projected 70% of clean hydrogen being sourced from abroad by the end of the decade, Bloomberg said.

The country has already outlined plans for a hydrogen network and is expediting infrastructure development to realize this goal.

Read more: Spain, Portugal, And France To Build Green Hydrogen Pipeline By 2030

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