Friday, 6 Jun 2025
  • About Us
  • Contact Us
  • Sitemap
0

No products in the cart.

Subscribe
site logo
  • World
    • Travel
  • Politics
    Saudi-American Arms Deal Signals Strategic Shift Amid Regional Realignment

    Saudi-American Arms Deal Signals Strategic Shift Amid Regional Realignment

    By
    Arabinform
    Oman and Russia: Strengthening Bilateral Ties Amid Global Turmoil

    Oman and Russia: Strengthening Bilateral Ties Amid Global Turmoil

    By
    Arabinform

    US-Saudi Nuclear Cooperation Signals Strategic Shift in Energy Future

    By
    Arabinform
  • Business and Economy
  • Technology
  • Environment
  • Opinion

    Global Surge in Gold Investment Signals Flight to Safety Amid Political Uncertainty

    By
    Arabinform

    Transatlantic Turbulence Fuels U.S. Economic Strategy Shift

    By
    Arabinform

    Awaiting the White Swans: Could Sanctions on Russia Be Lifted Soon?

    By
    Arabinform

    OPEC+ on the Brink: Structural Pressures Undermine Oil Pact Stability

    By
    Arabinform

    Algeria’s Energy Strategy: Balancing Hydrocarbons and the Green Transition

    By
    Arabinform

    Trump’s Second Term: A Fast Start With Fading Momentum

    By
    Arabinform
  • Op-Eds
  • 🔥
  • Business and Economy
  • World
  • Saudi Arabia
  • Politics
  • China
  • energy
  • Gulf
  • economy
  • Oil
  • Opinion
Font ResizerAa
The Arabinform JournalThe Arabinform Journal
Search
  • World
  • Politics
  • Business and Economy
  • Technology
  • Environment
  • Travel
  • Opinion
  • Op-Eds
  • Contact Us
  • About Us
Have an existing account? Sign In
Follow US
© Copyright 2007-2025 The Arabinform Journal. All rights reserved. All registered trademarks herein are the property of their respective owners.
The Arabinform Journal > Blog > Opinion > Algeria’s Energy Strategy: Balancing Hydrocarbons and the Green Transition
Opinion

Algeria’s Energy Strategy: Balancing Hydrocarbons and the Green Transition

Algeria is pursuing a dual-track energy strategy focused on strengthening its hydrocarbon sector while gradually developing hydrogen and renewable energy projects to increase its role in the European market amid global energy transition and climate risks.

Arabinform
Last updated: April 11, 2025 12:12 pm
By
Arabinform
1.4k Views
8 Min Read
Share
Algeria’s Energy Strategy: Balancing Hydrocarbons and the Green Transition
Algeria’s Energy Strategy: Balancing Hydrocarbons and the Green Transition
SHARE

Algeria is redefining its energy policy in response to evolving dynamics in the European energy market and mounting climate risks. With hydrocarbon revenues forming the bedrock of its economy and a growing international focus on renewable energy, Algeria seeks to reinforce its strategic presence while diversifying its energy portfolio. According to a report by Solovieva Zoya A., PhD (Economics) and researcher at the Institute of Oriental Studies of the Russian Academy of Sciences, published in Vostochnaya Analitika, the country is leveraging its substantial natural gas reserves, along with its emerging ambitions in hydrogen and solar energy, to reposition itself within a rapidly evolving global energy landscape.

Strategic Objectives and Policy Foundations

Algeria’s Energy Strategy
Algeria’s Energy Strategy

The foundation of Algeria’s energy strategy was laid out by senior government officials, including Minister of Energy and Mines Mohamed Arkab. The approach prioritizes a gradual and responsible energy transition, centering on diversification of the energy mix with emphasis on cleaner and more affordable sources. This includes enhanced energy efficiency, the promotion of renewables, and better consumption control to preserve natural resources for future generations.

In parallel, the Ministry of Environment emphasized Algeria’s strategic commitment to achieving 30% renewable energy in its national mix by 2035. Under the Paris Agreement, the country also committed to reducing greenhouse gas emissions by 7% by 2030, potentially increasing this figure to 22% with international financial support.

Hydrocarbon Sector: Still a Pillar

Despite transition goals, hydrocarbons remain essential to Algeria’s economic and energy structures. From 2000 to 2022, fossil fuels consistently made up over 99% of total production, with natural gas comprising around 65% of primary energy use. In 2023, Algeria ranked 16th globally in proven oil reserves and third in untapped natural gas resources. Two-thirds of the country’s territory remains unexplored, suggesting significant potential for further development.

The national oil and gas company Sonatrach leads the expansion of exploration and production. In 2023 alone, 14 new gas fields were launched, and plans for 2024–2028 include $47 billion in hydrocarbon investment, $36 billion of which will go to primary production. Algeria also continues to open its energy sector to foreign investment under a new hydrocarbons law that simplifies tax and legal frameworks for international partners.

European Energy Integration

Europe is Algeria’s primary energy export market, accounting for 96% of liquefied natural gas (LNG) exports and over 85% of pipeline gas deliveries. This alignment is driven by geographic proximity and existing infrastructure, including the Transmed, Medgaz, and Maghreb-Europe pipelines. These routes connect Algeria with Italy, Spain, and beyond.

Algeria’s share in the European gas import market rose significantly in the context of geopolitical shifts and the European Union’s aim to phase out Russian gas by 2027. In Q1 2024, Algeria accounted for 19.7% of Europe’s pipeline gas imports, just behind Norway and ahead of Russia.

However, analysts warn that Algerian exports may decline by up to 4% in 2024 due to falling European demand and maintenance disruptions. Despite this, projections indicate that Algeria could increase its gas exports to over 100 billion cubic meters annually by 2030 if investments in field development and transport infrastructure continue as planned.

Green Hydrogen: A Strategic Priority

A cornerstone of Algeria’s long-term strategy is the development of green and blue hydrogen. A national roadmap unveiled in early 2024 outlines plans to begin exporting clean hydrogen to Europe by 2030, with targets to produce at least 10 million tonnes annually by 2050. Around 75% of this volume is expected to be exported.

Algeria aims to use its natural gas to produce “blue” hydrogen, while gradually expanding “green” hydrogen production via electrolysis using renewable energy. Germany has already committed €20 million to fund a pilot green hydrogen plant, while discussions continue on upgrading existing pipelines for future hydrogen exports.

Renewable Energy Development

The development of solar energy plays a key role in Algeria’s climate and energy policy. Although the country adopted a national renewables program as early as 2011, progress has been limited. By 2022, the installed renewable energy capacity was just under 590 MW, representing only 0.84% of total electricity production.

In 2021, Algeria created the joint venture SHAEMS to implement large-scale solar initiatives. The “Solar 1000+” project aimed to build 1000 MW of capacity across five sites, with 40–50% local content. Delays in tendering and project execution, however, reflect broader financial and logistical constraints.

Future solar projects, including the planned 2000 MW “Sonelgaz-EZ” initiative and a 4000 MW solar program in southern Algeria, are viewed as ambitious but face significant implementation hurdles due to funding, regulatory fragmentation, and inadequate infrastructure.

Climate Policy and Strategic Outlook

In mid-2024, Algeria introduced a new national climate strategy. Led by Sonatrach’s director for sustainability, it focuses on emissions reduction, renewable integration, and clean technology development. A key component is natural gas, which remains central to Algeria’s energy security and international role.

Environmental measures include afforestation programs and a reaffirmed commitment to reduce the carbon intensity of energy exports. Strategic partnerships with European countries, China, and the United States further signal Algeria’s commitment to expand its energy influence while navigating the green transition.

Strategic Realignment in a Shifting Energy Landscape

Algeria’s energy strategy reflects a pragmatic approach to global energy transitions. While hydrocarbons continue to dominate its economy, the country is increasingly investing in hydrogen and solar energy to adapt to the evolving European market. The energy transition is framed more as a complement to Algeria’s core fossil fuel exports than a replacement, with clean technologies positioned to reinforce its export potential and geopolitical relevance.

Geopolitical developments and Europe’s diversification away from Russian energy have created an opportunity for Algeria to expand its role as a key supplier. As global and regional energy demands shift, Algeria’s strategy of incremental diversification — built on natural gas, foreign partnerships, and emerging renewables — is likely to shape its future as a prominent player in the international energy arena.

TAGGED:Algeriaenergy strategyEuropeexportshydrocarbonshydrogennatural gasRenewable Energy
Share This Article
Facebook LinkedIn Email Copy Link Print
Previous Article OPEC+ on the Brink: Structural Pressures Undermine Oil Pact Stability
Next Article Trump’s Tariff Wars and the Reshaping of Global Economic Order Trump’s Tariff Wars and the Reshaping of Global Economic Order

Stay Informed with Reliable and Timely Updates!

We are dedicated to providing accurate and up-to-date information, ensuring you stay informed about the latest events and trends. Follow our updates in real-time across multiple platforms.
FacebookLike
XFollow
TelegramFollow
Google NewsFollow
LinkedInFollow
RSS FeedFollow

You Might Also Like

Opinion

OPEC+ on the Brink: Structural Pressures Undermine Oil Pact Stability

By
Arabinform
Business and Economy

Saudi Sovereign Fund Eyes Europe Amid Diversification Push

By
Arabinform
City of Moscow // Arabinform.com
Opinion

Awaiting the White Swans: Could Sanctions on Russia Be Lifted Soon?

By
Arabinform
Trump’s Second Term: A Fast Start With Fading Momentum
Opinion

Trump’s Second Term: A Fast Start With Fading Momentum

By
Arabinform
site logo
Twitter Facebook Linkedin Telegram Rss

About US

The Arabinform Journal. Providing up-to-date analytics on business, finance, politics, technology, and other key topics. Stay with us and follow our latest publications.

Creative Commons License
Top Categories
  • World
  • Business and Economy
  • Politics
  • Technology
  • Environment
  • Opinion
Usefull Links
  • About Us
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • Op-Eds
  • Contact Us
  • Sitemap

© 2025 The Arabinform Journal.
All rights reserved.
All registered trademarks herein are the property of their respective owners.

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?

Continue with Google
Not a member? Sign Up