Project

Germany's deep decarbonization scenarios indicate that achieving climate neutrality by mid-century will largely depend on energy efficiency and the use of renewable energy sources. However, these scenarios also highlight that hydrogen and synthetic fuels will be crucial for reducing emissions beyond 80%. Due to the limited potential for renewable energy generation in Germany, a significant portion of the necessary hydrogen will need to be imported. Algeria is a promising partner for establishing a hydrogen partnership with Germany, thanks to its excellent conditions for renewable power generation and robust logistical infrastructure, including around 15 ports, an extensive gas grid, and numerous refineries and chemical plants. The deployment of renewable energy and PtX technologies offers enormous potential for the Algerian economy by supporting the shift away from the current use of natural gas and oil resources and providing opportunities for economic and social development (investment, jobs, new markets). The formation of a German-Algerian hydrogen partnership could therefore be mutually beneficial, but requires compliance with strict sustainability criteria to ensure that the creation of export markets does not come at the expense of the decarbonization of the Algerian economy.

The study commissioned by KfW, titled "Assessment and Analysis of the Power-to-X Market and Investment Opportunities in Algeria" shall investigate the opportunities for Algeria along the value chain of different PtX technologies. This study serves as the basis to initiate concrete programmes in the framework of the German-Algerian Financial Cooperation under the responsibility of the German Federal Ministry for Economic Development and Cooperation BMZ. The primary focus is on identifying investment opportunities, particularly in hydrogen production facilities and related Power-to-X infrastructures. To achieve a comprehensive understanding, the study employs several methods, including:

Methods

• Renewable energy resource assessment
• Analysis of green hydrogen production potentials
• Production site identification
• Cost calculations for hydrogen production (including synthesis products) and transport
• Development of different scenarios
• Sustainability Assessment
• Stakeholder interviews and workshops
• Identification of investment opportunities

• Müller, V. P.; Eichhammer, W.; van Vuuren, D. (2024): Paving the way: Analysing energy transition pathways and green hydrogen exports in developing countries – The case of Algeria. In: International Journal of Hydrogen Energy, 67, pp. 240–250. https://doi.org/10.1016/j.ijhydene.2024.04.153.

April 2021 - June 2023.

• The work was commissioned by KfW.

• Fraunhofer ISE.