UNDP, Algeria Partner for Methane Cuts and Green Hydrogen Exploration

Algeria formalized a cooperation agreement with the United Nations Development Programme (UNDP) on Tuesday, aimed at bolstering efforts to reduce methane emissions within the hydrocarbon sector and examining the technical and economic potential for green hydrogen development at the Sonatrach complex. The signing ceremony occurred during a national workshop focused on climate finance and carbon markets, organized by the Ministry of Hydrocarbons and Sonatrach under the high patronage of the Prime Minister. Key officials present included Miloud Moudjalled, Secretary-General of the Ministry of Hydrocarbons, and Noureddine Daoudi, CEO of Sonatrach, alongside representatives from various national bodies, relevant sectors, and international partners.

The project, titled “Enhancing the Measurement, Reporting, and Verification System for Methane Emission Reduction and a Feasibility Study on Green Hydrogen Potential to Accompany Sonatrach's Energy Transition,” is built upon two core pillars. The first concentrates on strengthening Sonatrach's capabilities in the measurement, reporting, and verification of methane emissions. This involves installing and operating a fixed system designed for continuous leak detection and monitoring, in adherence to international standards and practices, notably the Oil and Gas Methane Partnership (OGMP 2.0) initiative. This system is expected to improve early detection of methane leaks, provide accurate and reliable emission data, and facilitate the implementation of necessary reduction measures, thereby enhancing Sonatrach's environmental performance and transparency.

The second pillar involves conducting a comprehensive technical and economic feasibility study on the potential for green hydrogen. This study will encompass an evaluation of available technological options, identification of necessary infrastructure, and analysis of scenarios for the gradual integration of green hydrogen into Sonatrach’s value chain and industrial activities. The UNDP is tasked with directly implementing this project in close coordination with Sonatrach, which is designated as the primary technical beneficiary. The UNDP will provide essential technical expertise and support, fostering technology transfer and developing national competencies in emission monitoring and low-carbon energy solutions.

This collaboration underscores Algeria's proactive pursuit of reducing greenhouse gas emissions and advancing the environmental sustainability of its energy industry. The initiative aligns with national endeavors to explore new alternatives and solutions that support the country’s energy transition and diversify its energy sources, reinforcing Algeria's commitment to international climate cooperation and innovative energy solutions.