VNG and SONTRACH Are Collaborating on Green Hydrogen and Methane Emission Reduction

The Leipzig-based energy company VNG AG and the Algerian company SONATRACH have signed a new Memorandum of Understanding (MoU) to continue their collaboration on green hydrogen following the expiration of their initial MoU and to expand their cooperation in reducing methane emissions.

In the area of green gases, VNG and SONATRACH will jointly explore options for establishing 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 the exchange of expertise regarding the regulatory, technical, and economic framework for market ramp-up. This will also include examining the extent to which existing gas pipelines in Algeria can be repurposed for hydrogen transport.

Furthermore, the agreement encompasses joint initiatives to further reduce methane emissions along the gas value chain. To this end, VNG and SONATRACH intend to deepen their exchange of expertise and develop concrete joint projects.

As Hans-Joachim Polk, member of the board of VNG AG, explained, the demand for low-emission energy sources in Germany and Europe is steadily growing. To meet this demand, Europe will continue to be highly dependent on corresponding imports. Algeria offers great potential in this regard in the long term.