VNG and SONATRACH strengthen cooperation on green hydrogen and methane emissions reduction
The Leipzig-based energy company VNG AG and the Algerian company SONATRACH have signed a new Memorandum of Understanding (MoU) to continue their cooperation following the expiration of an initial MoU in the field of green hydrogen, and to expand their collaboration in reducing methane emissions.
In the area of green gases, VNG and SONATRACH aim to jointly explore opportunities to establish a supply chain for green hydrogen from Algeria to Europe, particularly to Germany. The focus will be on feasibility studies for production and transport solutions, as well as on professional exchange regarding regulatory, technical, and economic framework conditions for market ramp-up. This will also include examining the feasibility to convert gas infrastructure in Algeria for Hydrogen transport.
In addition, the agreement includes joint initiatives to further reduce methane emissions along the gas value chain. VNG and SONATRACH intend to deepen their exchange of experience and develop concrete joint projects.
With this agreement, SONATRACH and VNG underline their shared interest in contributing to a secure, diversified, and lower-emission energy supply in Germany and Europe.
“The demand for low-emission energy sources in Germany and Europe is steadily increasing. To meet this demand, Europe will continue to rely heavily on corresponding imports. Algeria offers significant long-term potential in this regard. I am therefore pleased that we are continuing and strengthening our cooperation with SONATRACH in this important area. At the same time, reducing methane emissions along the gas value chain is a key lever for climate protection. Close exchange with SONATRACH provides an important basis for this. Our shared goal is to combine security of supply with decarbonization,” explained Hans-Joachim Polk, member of the board of VNG.
SONATRACH: “Today, we are formalising the strengthening of collaboration between our two companies. The MoU demonstrates our mutual trust and joint commitment to addressing the specific challenges facing our sector. It also clearly demonstrates SONATRACH's commitment to supporting the transition to climate-neutral energy sources and contributing to climate change mitigation. In this new phase, we intend to build upon our previous successes and explore new synergies in the production and transportation of green hydrogen and its derivatives, as well as in reducing methane emissions. We are confident that this new phase will be even more successful.”
Cooperations such as the one between VNG and SONATRACH make a tangible contribution by helping to sustainably reduce methane emissions while strengthening the foundation for long-term, stable energy partnerships. In doing so, they make a significant contribution to energy security in Germany and Europe.
VNG is a group of over 20 companies active in the European energy industry with around 2,000 employees. Headquartered in Leipzig, the group is a gas importer and wholesaler as well as an operator of critical gas infrastructure in the areas of natural gas transport and storage, ensuring a secure energy supply in Germany. With our commitment, projects and investments for the market ramp-up of renewable and decarbonised gases such as biogas and hydrogen, we are also creating new perspectives, actively driving change in the energy sector and strengthening our home region. Dependable, approachable and always moving. VNG – Energy. On the move.
Press picture
(f.l.t.r.) Hans-Joachim Polk (VNG AG), Ferhat Ounoughi (SONATRACH), Ulf Heitmüller (VNG), Nour Eddine Daoudi (SONATRACH), Konstantin von Oldenburg (VNG H&V); Image source: SONATRACH
