Algeria is positioning itself as a future supplier of green hydrogen to Europe, leveraging its solar potential and existing gas infrastructure. According to Eurasia Review, the country plans to produce 1 million tonnes of green hydrogen annually by 2030, scaling up to 5 million tonnes by 2040. The strategy hinges on a $10 billion investment plan announced by Sonatrach, Algeria’s state-owned energy company, in partnership with international firms including Germany’s Siemens Energy and Italy’s Eni.
The government has identified three pilot projects in Adrar, Ouargla, and Tindouf, regions with high solar irradiation. These sites will test electrolysis technologies and hydrogen storage solutions before full-scale deployment. Sonatrach’s CEO, Rachid Hachichi, stated that the company aims to export hydrogen via existing pipelines, including the Trans-Mediterranean gas network, which connects Algeria to Italy and Spain.
For entrepreneurs, this shift presents opportunities in renewable energy infrastructure, engineering services, and supply chain logistics. Algeria’s hydrogen roadmap includes local content requirements, meaning foreign investors must partner with Algerian firms to access incentives. The government has also introduced tax breaks for companies developing electrolysis plants or solar farms dedicated to hydrogen production.
The diaspora could play a role in bridging technology gaps. Algerian engineers and researchers abroad, particularly in Europe, are being encouraged to participate in knowledge transfer programs. The Ministry of Energy and Mines has launched a “Return and Innovate” initiative, offering grants to diaspora professionals who contribute to hydrogen projects. So far, 42 applications have been approved, with a focus on electrochemistry and grid integration.
Algeria’s hydrogen push aligns with Europe’s demand for clean energy imports. The European Union has set a target of 20 million tonnes of green hydrogen imports by 2030, and Algeria is one of the few North African countries with the infrastructure to deliver. Sonatrach estimates that hydrogen exports could generate $3–5 billion annually by 2040, diversifying Algeria’s economy beyond oil and gas.
However, challenges remain. The country’s renewable energy capacity is currently limited to 500 MW, far below the 15 GW needed for hydrogen production at scale. Entrepreneurs in solar panel manufacturing or battery storage could find opportunities in filling this gap. Additionally, the government is offering land leases at subsidized rates for renewable energy projects, with priority given to joint ventures between Algerian and foreign firms.
The hydrogen strategy also includes plans for domestic use. Algeria aims to replace 10% of its industrial gas consumption with green hydrogen by 2035, creating demand for local startups in sectors like steel and fertilizers. The Ministry of Industry has announced a $500 million fund to support hydrogen-powered industrial projects, with grants covering up to 30% of capital costs.
For the diaspora, this could mean opportunities in agribusiness and manufacturing. Algerian entrepreneurs abroad with expertise in hydrogen applications—such as fuel cells for transportation or ammonia production—could find a receptive market. The government has also simplified visa procedures for diaspora investors, reducing processing times from 30 to 10 days for projects in renewable energy.
Key takeaway for entrepreneurs
Algeria’s hydrogen plans create openings in renewable energy infrastructure, engineering partnerships, and industrial applications. The $10 billion investment plan includes incentives for local content, making joint ventures with Algerian firms a prerequisite for foreign players. Diaspora professionals with expertise in electrolysis or grid integration can access grants through the “Return and Innovate” program, while startups in solar manufacturing or battery storage may benefit from subsidized land leases.
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