In pursuit of reducing greenhouse gas emissions, the two companies have said they will define energy efficiency initiatives and projects related to green hydrogen, renewable energy and CCS.

Signed by Eni CEO, Claudio Descalzi, and CEO of Sonatrach, Toufik Hakkar, in the Presence of Italian Prime Minister, Giorgia Meloni, and President of Alegeria, Abdelmadjid Tebboune, the outlined potential projects are hoped to develop energy supply and accelerate the energy transition and decarbonisation.

H2 View understands, the companies also intend to conduct studies to identify the possibility of improving Alergia’s energy export capacity.

A report by Masdar, released in November (2022) identified Africa’s potential of becoming a hydrogen export superpower, estimating the continent could export 20 to 40 million tonnes of pure hydrogen, ammonia, and synthetic fuels a year.

Read more: Africa could produce 30-60 million tonnes of hydrogen annually

“These agreements bear witness to our commitment to ensuring Italy’s security of supply while at the same time pursuing our decarbonisation objectives,” said Descalzi. “The partnership between Italy and Algeria gets stronger today, and Alergia’s key role as one of Europe’s main energy suppliers is confirmed.”

Africa’s potential to secure future EU hydrogen demand was brought into focus at COP27, where Jorgo Chatzimarkakis, CEO of Hydrogen Europe told delegates that the continent could not meet its hydrogen and energy goals alone.

Read more: COP27: EU, Africa hydrogen collaboration in focus

“It is important to understand that Europe cannot do it on its own,” said Chatzimarkakis. “We do not have enough space, wind, or sun to produce what is required [by REPowerEU]. Our neighbouring continent, Africa does have the potential.”