Bosch to boost green hydrogen production in Algeria

From the newsletter

German engineering and technology company Bosch has committed to supporting the development of green hydrogen production in Algeria by fostering partnerships with local companies to manufacture key hydrogen technologies. This strategic move comes as part of Bosch's broader efforts to advance sustainable energy solutions globally.

• The initiative was announced during a high-level meeting in the capital Algiers between Algeria’s Secretary of State for Energy and Renewable Energies, Noureddine Yassaâ, and a Bosch delegation led by Markus Thill, President of Bosch for the Africa region. The discussions explored investment opportunities in the green hydrogen sector and its derivatives, such as ammonia and methanol.

• According to a statement by the Algerian Ministry of Energy, discussions centred on investments in knowledge transfer and engineering partnerships to strengthen Algeria’s hydrogen value chain. Bosch expressed interest in supporting infrastructure development and facilitating technology transfer, aligning with the country’s ambition to become a key player in the global hydrogen economy.

More details

• Established in 1886, Bosch has established itself as a key player in the research and development of new technologies relating to green hydrogen. The company has introduced a Solid Oxide Fuel Cell (SOFC) system, which is already being deployed in hospitals and industrial facilities to provide decentralised, low-emission energy solutions. Additionally, the company has developed mobile fuel cells for trucks, contributing to the decarbonisation of the transport sector. 

• Bosch has maintained a strong presence in Africa since 1906, with its operations increasingly aligning with the continent’s growing clean energy ambitions. In recent years, the company has expanded its focus on sustainable solutions, including green hydrogen technologies, to support Africa’s energy transition. Beyond Algeria, Bosch is actively supporting green hydrogen initiatives in South Africa, where it collaborates on hydrogen mobility projects, and in Namibia, where it is exploring partnerships for large-scale hydrogen production.

• With the Paris Agreement setting a 2050 carbon neutrality target, nations are accelerating their clean energy transition through dedicated policies and strategies. Algeria, for instance, launched its National Green Hydrogen Strategy in 2023 to position itself as a regional and global leader in hydrogen production. 

• To achieve this ambition, Algeria has set a target of producing 40 TWh of green hydrogen annually by 2040, with 10 TWh allocated for domestic use. The country plans to generate hydrogen using a mix of 70% solar photovoltaic and 30% wind energy while prioritising Proton Exchange Membrane (PEM) electrolysers for their efficiency and adaptability. With these strategies in place, Algeria aims to exceed 1 million tons of hydrogen production per year by 2040.

• As part of this broader shift, Algeria is joining other key African nations such as Egypt, Morocco, South Africa, Namibia, Mauritania, and Kenya in positioning itself as an emerging player in the green hydrogen sector. The country aims to accelerate its energy transition, enhance energy security, and meet climate commitments by establishing itself as a regional and global hydrogen leader by 2040.

• These targets are expected to generate $10 billion in annual revenue from hydrogen exports, reduce domestic reliance on fossil fuels, diversify the energy mix, contribute to global decarbonisation efforts, and create new jobs and industries.

• To support these goals, Algeria has launched three green hydrogen projects with a projected capacity of 0.005 -- 0.015 million tonnes per annum (mtpa). These include the Cepsa and Sonatrach Green Hydrogen Project, aimed at supplying the European market; a 50 MW Green Hydrogen Pilot Plant funded by Germany’s development bank KfW; and the SoutH2 Corridor Hydrogen Pipeline Project, through which German energy company VNG AG is partnering with Algerian firms to transport green hydrogen to Europe.

Our take

• Bosch’s interest signals confidence in Algeria’s hydrogen plans, but for the sector to thrive, the government must create clear regulations, investment incentives, and a stable policy environment to encourage long-term partnerships.

• Algeria’s green hydrogen strategy outlines clear objectives, including supplying 30–40 TWh of hydrogen and derivatives to meet 10% of Europe’s demand. This policy focus makes Algeria an attractive destination for Bosch’s and other companies' hydrogen technology investments, reinforcing its role in Europe’s decarbonisation efforts.

• While Algeria aims to supply Europe’s hydrogen demand, other African nations like Morocco and Namibia are also expanding in this space. To stay competitive, Algeria must rapidly scale up its renewable energy capacity and build the necessary infrastructure to meet its ambitious targets.