U.S.-based renewable energy company Hecate Energy is partnering with Tosyali Algérie, one of Africa’s leading steel producers, to build a large-scale green hydrogen production facility in northwestern Algeria. In this context, a four-party Memorandum of Understanding (MoU) is set to be signed between Sonatrach, Sonelgaz, Hecate Energy, and Tosyali Algérie. The main goal of the agreement is to reduce carbon emissions in the steel industry and increase the integration of renewable energy into the sector.
The project will be implemented in two phases
The first phase will include technical feasibility, environmental impact, and economic viability analyses. The feasibility process is supported by the European Union and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) with a budget of approximately €28 million. In the second phase, a green hydrogen production facility will be constructed. The hydrogen produced will be used directly in steel production, aiming for a significant green transformation in the sector.
The first step of the project was taken on April 29, 2024, with a memorandum signed between Sonatrach and Hecate Energy. A second agreement followed with Tosyali Algérie on July 24, 2024.
Statements from project partners
Sonatrach General Manager Rachid Hachichi commented:
“This project will contribute not only to the transformation of our industry but also to our country’s green energy vision.”
Hecate Energy CEO David Wilhelm added:
“An energy-rich country like Algeria turning to renewable sources is inspiring for the global energy transition.”
Tosyali Algérie Board Member Alp Topçuoğlu also stated:
“Using green hydrogen in steel production is a strategic step for both environmental and economic sustainability.”
This strategic partnership supports Algeria’s goal to become not just an energy exporter but also a regional leader in green industry. The country aims to reach 27% renewable energy share in its energy mix by 2026 and build 15 GW of renewable energy capacity. The project is also expected to contribute to the SoutH2 Corridor initiative, which envisions transporting green hydrogen to Europe.
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