VNG AG, which is a Leipzig-based energy company, along with SONATRACH, the Algerian company, entered into a new Memorandum of Understanding – MoU to keep up their cooperation on green hydrogen and lowering methane emissions even after after the expiry of an early MoU.
VNG and SONATRACH aim to work together in the field of green gases to look for opportunities to develop a supply chain for green hydrogen from Algeria to Europe and especially to Germany. Evaluations of feasibility for production and transport solutions as well as professional exchange of regulatory and technical along with economic framework conditions for market ramp-up will be emphasized. This will also involve the assessment of the practicality of converting gas infrastructure in Algeria to hydrogen transport.
The agreement on cooperation on green hydrogen and lowering methane emissions also calls for collaborative efforts to accelerate the reduction of methane emissions across the gas value chain. VNG and SONATRACH want to further develop their experience exchange and come up with productive joint projects.
Due to this agreement, SONATRACH and VNG stress their common interest in helping to contribute toward a secure, diversified, as well as lower-emission energy supply across Germany and Europe.
According to the member of the board of VNG, Hans-Joachim Polk, “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 collaboration. Our shared goal is to combine security of supply with decarbonization.”
As per a statement from SONATRACH, “Today, we are formalizing 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.”
It is worth noting that cooperations like the one between VNG as well as SONATRACH contribute in a tangible way to the sustainable reduction of methane emissions while laying the groundwork for long-term and stable energy partnerships. This makes a substantial contribution toward energy security, both in Germany as well as Europe.