Green hydrogen production in Algeria will take time

Significance

Algeria has huge renewable energy potential in the form of onshore wind and solar power, while its existing natural gas export pipelines could be repurposed for hydrogen as gas demand falls.

Impacts

• A lack of investment security and revenue clarity could deter European investment in Algeria's renewable energy sector.
• Increases in renewable energy will be directed in the first instance to reducing gas-fired generation to support gas export availability.
• A lack of water will be a barrier to green hydrogen production, with consequences for Algeria's relative competitiveness.