Sonatrach, Tosyali Algeria Forge Strategic Agreement for Green Hydrogen Production

✏️ By: Dr. Hana Saada

Algiers, Algeria | July 25th, 2024 — In a significant development for Algeria’s energy sector, Sonatrach and Tosyali Iron Steel Industry Algeria have formalized a major collaboration through a Memorandum of Understanding (MoU), signed on July 24, 2024, at Sonatrach’s headquarters in Algiers. This agreement marks a crucial step toward the joint exploration of green hydrogen production from renewable energy sources within Algeria.

The MoU, endorsed by Rachid Hachichi, CEO of Sonatrach, and Fuat Tosyali, Chairman of Tosyali Iron Steel Industry Algeria SPA, outlines a comprehensive feasibility study to assess the viability of producing green hydrogen. This hydrogen will be utilized in the production of “green steel” at Tosyali’s steel complex, a leading player in the steel industry. This collaboration aims to advance the integration of sustainable practices within the Algerian steel sector, aligning with global trends toward environmentally responsible manufacturing.

Sonatrach emphasized that this agreement is aligned with Algeria’s national hydrogen strategy, which aims to reduce natural gas consumption and consequently lower greenhouse gas emissions. The initiative is expected to send a strong signal regarding the transition from fossil fuels to green hydrogen in Algeria’s industrial landscape. The partnership not only represents a significant leap towards sustainable energy solutions but also underscores Algeria’s commitment to environmental stewardship and innovation in the energy sector.

The MoU is anticipated to serve as a model for future energy transition projects, reflecting a growing trend towards integrating renewable energy solutions in industrial processes. This partnership between Sonatrach and Tosyali is poised to play a pivotal role in the country’s efforts to achieve a greener and more sustainable industrial framework.

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