From natural gas to green hydrogen: Developing and repurposing transnational energy infrastructure connecting North Africa to Europe

Roberto Cardinale

Energy Policy, 2023, vol. 181, issue C

Abstract: This paper studies the economic and regulatory conditions for the implementation of large-scale projects of production and transport of green hydrogen from North Africa to Europe. The EU has shown a remarkable interest in importing hydrogen from North Africa, to reach climate commitments while compensating for the reduction of gas imports from the Russian Federation. The idea to import green hydrogen from North Africa stems from the potentially low costs of production thanks to the abundance of solar energy and land in desertic areas, and to existing export infrastructure. The paper analyses the cases of Egypt and Algeria and finds that Algeria has a potential cost advantage in transporting green hydrogen to Europe thanks to an overcapacity in its existing gas infrastructure, which could be repurposed. By contrast, Egypt is more competitive in the generation of renewable power, a key input of green hydrogen, thanks to a regulation that attracts investments. Overall, both countries are cost competitive in a similar way, although production of renewable energy is still insufficient to make export infrastructure to Europe viable. Based on their regulatory and political economy differences, the paper suggests ways for the EU to adopt a differentiated approach of cooperation with Egypt and Algeria, which suits their strategic and commercial interests and contributes to boosting their production and transport potential.

Keywords: Natural gas; Green hydrogen; Renewable energy; Infrastructure; Egypt; Algeria (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:181:y:2023:i:c:s0301421523002082

DOI: 10.1016/j.enpol.2023.113623

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