VNG AG signs letter of intent to import green hydrogen from Algeria
The Leipzig-based energy company VNG AG signed a letter of intent today in Oran, Algeria, with the Algerian energy companies Sonatrach and Sonelgaz, the Italian gas grid operator SNAM, the Italian company SeaCorridor and the Austrian electricity company VERBUND. The agreement expresses the commitment of the companies to jointly examine the feasibility of a project for the large-scale production of green hydrogen in Algeria and its export from North Africa via the planned “South H2 Corridor” to Italy, Austria and Germany.
In the letter of intent signed today, the participating companies define the framework for further cooperation, including the preparation of necessary studies. The partnership aims to explore the technical and economic feasibility of a large-scale project along the entire green hydrogen value chain.
Hans-Joachim Polk, Member of the Board of Management for Infrastructure and Technology at VNG AG, expressed his satisfaction about the signing of the letter of intent: “After VNG signed a supply contract for Algerian pipeline gas at the beginning of the year, we are delighted to have laid the foundation for a broadly based hydrogen partnership today. Algeria has enormous potential in the production of this future energy source and is therefore an important partner for us. If we can source green hydrogen from Algeria, we will diversify our corporate supply portfolio and make an important contribution to future security of supply with decarbonised gases. I am especially pleased that we will be undertaking project jointly with Algerian, Italian and Austrian partners. International cooperation will play an essential role in rolling out the hydrogen economy in Germany and the rest of Europe, because the demand for hydrogen cannot be met by domestic production alone.”
VNG is a group of over 20 companies active in the European energy industry, employing about 1,700 people. As a gas importer and wholesaler as well as an operator of critical gas infrastructure, the Group, which is headquartered in Leipzig, is central to the secure supply of gas in Germany. With the “VNG 2030+” strategy, VNG is also pursuing an ambitious path for a market ramp-up of renewable and decarbonised gases such as biogas and hydrogen, paving the way for a sustainable, secure supply and, in the long term, climate-neutral energy system of the future.
