Power-to-X Country Analyses

A study titled "Power-to-X Country Analyses," initiated by the H2Global Foundation and developed in collaboration with the Fraunhofer Institute for Solar Energy Systems (ISE), focuses on analyzing the costs associated with the production and export of green hydrogen and its derivatives to Europe by 2030. In this study, Algeria emerges as a particularly promising country to become a major supplier of green hydrogen to Europe.

This perspective would pave the way for new economic opportunities for the country, including generating substantial income through the commercialization of a clean and renewable energy source. This process would contribute to the overall economic development of the country.

The analysis specifically highlights two key factors that position Algeria as a favorable candidate. Firstly, the country's abundant renewable resources, including solar and wind energy, play a central role in its capacity to efficiently and competitively produce green hydrogen. Additionally, its geographical proximity to the European market enhances Algeria's attractiveness as a potential supplier.

By considering a transition to the production and export of green hydrogen, Algeria could also achieve diversification of its economy, traditionally centered around the oil and gas industry. By reducing dependence on fossil fuels, the country could enhance its economic resilience and move towards a more sustainable and environmentally friendly path.

However, it's essential to acknowledge that the successful exploitation of this opportunity is not without challenges. Substantial investments in infrastructure and technologies will be required to realize these prospects. Additionally, strategic partnerships, trade agreements, and international collaborations will play a crucial role in bringing this vision to fruition.

In conclusion, the study underscores Algeria's potential to become a significant player in the green hydrogen sector in Europe, offering economic, environmental, and diversification benefits. However, its realization will depend on multiple factors and concerted efforts to transform this vision into a fruitful reality.

This study was prepared by the Fraunhofer Institute for Solar Energy Systems (ISE) on behalf of the H2Global Foundation in collaboration with the Gesellschaft für internationale Zusammenarbeit (GIZ). It was financed by the Federal Ministry for Economic Cooperation and Development (BMZ).