Algeria’s push to become a green hydrogen powerhouse is accelerating, led by state energy giant Sonelgaz’s newly launched international arm. Energy Minister Mohamed Arkab announced recently that the unit, Sonelgaz International, will open doors to foreign markets and deepen Algeria’s role in renewable energy exports. The move comes as Algeria makes “significant progress” in implementing its national hydrogen development strategy, Arkab told reporters in Algiers last week.
The minister’s statement followed a series of diplomatic and trade signals pointing to hydrogen as a new export frontier for Algeria. Earlier this year, the EU–Algeria Energy Dialogue in Brussels emphasized cooperation on green hydrogen, natural gas security, and renewables. A few months later, Sonelgaz International was formally announced, positioning Sonelgaz—Algeria’s electricity and gas utility—to compete globally in clean energy.
The timing is no coincidence. Algeria’s traditional oil and gas earnings face long-term pressure as Europe accelerates its green transition. Hydrocarbons still account for over 90 percent of Algeria’s export revenue, according to the Ministry of Energy. But with global demand for fossil fuels peaking and carbon tariffs rising under the EU’s Carbon Border Adjustment Mechanism, Algiers is racing to diversify.
Sonelgaz International is designed to do just that. By creating a dedicated export vehicle for hydrogen and renewable electricity, Algeria aims to leverage its vast solar and wind potential—particularly in the Sahara. The country boasts over 3,000 hours of sunlight annually in southern regions like Adrar and Tindouf, and wind speeds exceeding 7 m/s in coastal and inland zones. These conditions could support large-scale green hydrogen production at costs projected to fall below $2 per kilogram by 2030, according to a 2025 study by the Algerian Renewable Energy Development Center.
“Algeria is not just sitting on gas anymore,” said energy analyst Fatima Zohra Benkhelifa, based in Algiers. “It’s positioning itself as a future exporter of green molecules—starting with hydrogen.” Benkhelifa points to Algeria’s 2023–2030 hydrogen roadmap, which sets a target of exporting 30 terawatt-hours (TWh) of green hydrogen annually by 2030, rising to 100 TWh by 2040.
That ambition hinges on infrastructure. Sonelgaz International will not only export hydrogen but also facilitate foreign investment in green hydrogen plants, pipelines, and port facilities. Ports like Béjaïa and Arzew are being upgraded to handle ammonia and liquid hydrogen shipments, with feasibility studies underway for pipelines connecting southern solar zones to export hubs.
The development comes amid broader energy diplomacy. Algeria recently signed 15 accords with Tunisia, including energy cooperation, and deepened ties with Senegal on renewable electricity and hydrogen. Italy, too, has reaffirmed its commitment to Algerian energy, with Rome’s ambassador stating this summer that “Rome has not abandoned its relations with Algeria.”
Yet, challenges remain. Algeria’s power grid has struggled under extreme heatwaves this year, with widespread outages reported in July. Reliability of electricity supply—critical for green hydrogen production—must improve. Sonelgaz International’s role includes upgrading transmission networks and integrating intermittent solar and wind power.
For Algerian entrepreneurs and the diaspora, Sonelgaz International opens a new frontier. Local firms can now partner with the state utility to supply components, engineering, or logistics for hydrogen projects. Diaspora investors—many with energy sector experience in Europe or North America—are being courted to co-finance pilot plants or supply chains.
“This is a real opportunity for Algerian startups in solar, storage, and electrolysis,” said Kamel Hadjadj, founder of Algiers-based solar integrator SolarTech. His company is in talks with Sonelgaz International to supply tracking systems for hydrogen pilot sites in the south. “The state is no longer just a buyer—it’s a facilitator and investor.”
The diaspora, too, is being incentivized. The government has streamlined investment pathways for non-resident Algerians, offering tax breaks and land leases for green energy projects. In 2025, the Ministry of Energy launched a “Hydrogen Diaspora Fund,” targeting $500 million in co-investment from Algerians abroad over five years.
Key takeaway for entrepreneurs
Algeria’s launch of Sonelgaz International signals a concrete pathway for local and diaspora investors to enter the green hydrogen sector. With 30 TWh of hydrogen exports targeted by 2030 and upgraded port infrastructure, opportunities span manufacturing, logistics, and project development. Diaspora investors can access government-backed co-financing and tax incentives, while local firms can partner with Sonelgaz on supply chains and pilot projects.
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.