VNG AG has signed a letter of intent with Algerian energy firms Sonatrach and Sonelgaz, the Italian gas grid operator SNAM, Italian company SeaCorridor, and Austrian electricity company VERBUND. The agreement reflects the commitment of these companies to jointly assess the feasibility of large-scale green hydrogen production in Algeria and its export from North Africa via the proposed “South H2 Corridor” to Italy, Austria, and Germany.
Furthermore, the letter of intent outlines the framework for future cooperation. This will include the preparation of essential studies. The partnership aims to evaluate the technical and economic viability of a large-scale project encompassing the entire green hydrogen value chain.
VNG AG, headquartered in Leipzig, is an energy company with around 20 subsidiaries across Germany and Europe, specialising in gas and gas infrastructure. Their operations encompass the entire gas value chain, including Trading & Sales, Transport, Storage, and Biogas. The company is dedicated to advancing a sustainable and climate-neutral energy future.
REGlobal’s Views: Algeria has a huge renewable energy potential, ample land and is close to demand centers in Europe, making it an ideal destination for green hydrogen production. The country can expect many large green hydrogen projects to come up in the near future.
