Here’s my video from Oran, Algeria, after a very informative “Africa and Mediterranean Energy & Hydrogen Exhibition & Conference,” NAPEC 2024 (video highlights here). Two parts to my analysis:
First, (up to time 11:30) I explain the rationale and impetus for the EU drive for massive green hydrogen gas imports. This is primarily driven by Germany’s increasing desperation at being locked into over-reliance on weather-variable renewables, whose high prices are sparking its “deindustrialization,” especially after losing Russian gas pipeline imports due to Putin’s war on Ukraine, plus due to the own-goal shutting down of their zero-carbon, amortized (paid for) nuclear plants during the European energy crisis. (Note: I misspoke: “Grey” hydrogen would NOT have the CO2 stored, “Blue” would. Both are derived from natural gas.)
I also explain how this massive green hydrogen “fix” to “renewables fundamentalist” policy is a techno-panacea that simply cannot work. Then ..
Second, (after 11:30) I describe the EU push for five massive hydrogen pipelines, and how they have (IMHO) attempted to deceive North Africans into converting their lucrative natural gas export business into a hydrogen production-and-export business, sending it all to Europe.
However, as I saw from chairing several technical and strategic panels at the October 14-17 NAPEC conference, Algerian engineers, economists, planners, management and others working at Sonatrach and elsewhere have their eyes wide open about the technical and economic limitations of hydrogen production and exports.
It will be interesting to see how this goes between the EU and North Africa (especially with Algeria) since, as I mentioned several times at the conference, the Norwegians (Equinor) and Shell Co. have both already renounced their earlier MOU with EU firms and governments to supply hydrogen via a huge Nordic pipeline to Germany, saying that they simply cannot find any European customers willing to sign contracts to receive this expensive-to-develop hydrogen.
Accordingly, the question I raised while moderating panels was this: How is it that EU and several of its renewables firms insist that Algeria sign an MOU at this conference to produce green hydrogen and send it via the planned “SoutH2 corridor” pipeline across the Mediterranean to Italy and north into Germany if there are no customers?
NOTE: Here’s some further info on the NAPEC conference and who is involved in the MOU that EU firms signed signed with the Algerians:
The opening ceremony featured an MOU signed with EU firms for developing the production and export of “green hydrogen” via a to-be-built “green” hydrogen (H2) pipeline across the Mediterranean to Italy and up into Germany. The EU member states involved were Italy, Austria and Germany.
[Begin quote from “Offshore Energy” online, 15 October 2024]:
VNG and partners looking into green hydrogen import from Algeria via SoutH2 Corridor — October 15, 2024, by Ajsa Habibic
Germany’s VNG, Algeria’s Sonatrach and Sonelgaz, Italy’s Snam and SeaCorridor, and Austria’s Verbund have signed a memorandum of understanding (MoU) to jointly examine the feasibility of a project for large-scale hydrogen production in Algeria and its export via planned SoutH2 Corridor to Italy, Austria, and Germany. The agreement signed on October 14, 2024, sets out the framework for further cooperation among the companies, including the preparation of joint studies. Specifically, the partners agreed to explore the technical and economic feasibility of a large-scale project along the entire green hydrogen value chain using the SoutH2 Corridor. [END Quote]
The Global Barrel 