Cepsa and Sonatrach have officially signed a memorandum of understanding (MoU) to collaborate on a feasibility study aimed at developing an integrated project for green hydrogen production and its derivatives in Algeria, primarily targeting the European market. The signing ceremony took place at the Oran Convention Center (CCO) and was overseen by the Minister of Energy and Mines, Mr. Mohamed Arkab. The event was attended by various government officials, including the Honorable Consul General of Spain in Algeria, the CEO of Sonatrach, Mr. Rachid Hachichi, the CEO of Sonelgaz, Mr. Mourad Adjal, and the CEO of Cepsa, Mr. Maarten Weteslaar.

This memorandum envisions a two-phase implementation for the green hydrogen project. The first phase will involve comprehensive studies to evaluate the feasibility, potential, and profitability of the initiative. The second phase will focus on the actual development of the project based on the findings from the initial phase. The integrated approach to this development aligns with the decarbonization goals of both companies, reflecting their commitment to sustainable energy solutions.

Key components of the project will include the construction of an electrolysis hydrogen production facility, alongside solar and wind plants designed to provide renewable energy to power the electrolyzers. Additionally, the project plans to include a production plant for methanol and/or green ammonia, along with essential infrastructure for storage, transportation, and other auxiliary facilities necessary for the commercial operation of the initiative.

By pursuing this green hydrogen project, Cepsa and Sonatrach aim to leverage Algeria's renewable energy resources while meeting the growing demand for green hydrogen in Europe. The collaboration not only reflects a strategic move to position both companies at the forefront of the green energy transition but also underscores their dedication to achieving long-term sustainability goals. As the global energy landscape shifts toward cleaner alternatives, this partnership stands to contribute significantly to reducing carbon emissions and promoting renewable energy usage in the region.

In summary, the MoU between Cepsa and Sonatrach represents a significant step toward developing a green hydrogen production project that aligns with both companies' sustainability objectives while addressing market demands. The project's success will hinge on thorough feasibility studies and a commitment to renewable energy integration, setting the stage for a transformative impact on the energy sector in Algeria and beyond.

Cepsa is a prominent international company dedicated to sustainable mobility and energy, backed by robust technical expertise.   The company is partially owned by Mubadala Investment Company Group and The Carlyle Group, and boasts nearly 90 years of experience in the industry. This extensive background has enabled Cepsa to emerge as one of Spain's leading energy companies, expanding its operations across five continents.