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In pursuit of energy transition objectives, Algeria is increasingly focusing on the production and utilization of low-carbon and renewable hydrogen. While hydrogen has predominantly been used in the chemical and refining industries, it holds promise for decarbonizing specific industrial sectors, enabling electricity storage, and powering the transport sector. However, several barriers must be overcome before hydrogen technologies can be widely deployed. Numerous countries, with Japan at the forefront, are heavily investing in this burgeoning market, anticipating the creation of thousands of new jobs. Hydrogen offers Algeria significant potential for greenhouse gas (GHG) reduction and substantial economic benefits. In response, the Algerian government has prioritized energy transition to new and renewable sources as part of its economic recovery plan, aiming for "green" growth through innovative and digital energy technologies. This paper's primary objective is to provide a techno-economic foundation for guiding public policy development, identifying promising opportunities for green hydrogen within Algeria's energy transition context, and outlining sustainable pathways for pilot projects that promote hydrogen adoption within the Algerian society. Additionally, this paper will explore the latest advancements in hydrogen research, technology, and applications relevant to the Algeria's energy transition. The Algerian energy minister, has reaffirmed his desire to "invest in hydrogen", an energy source presented as one of the solutions to the climate crisis. In October 2021, Algeria launched a hydrogen plan worth several billion dinars, including 100 million for research, to enable the country to develop "green" hydrogen, i.e. produced without fossil fuels. • Algeria's energy transition mission focuses on promoting energy transition, innovation, and efficiency. • The Algerian Strategy on Green Hydrogen 2050 intends to establish a supportive framework for hydrogen sector development. • Algeria has set ambitious targets: reducing its GHG emissions by 2030 and lowering its consumption of petroleum products. • Algeria export between 30 and 40 TWh by 2040 of gaseous green hydrogen, liquefied, and derived. [ABSTRACT FROM AUTHOR]

The measures needed to limit global warming pose a particular challenge to current fossil fuel exporters, who must not only decarbonise their local energy systems, but also compensate for the expected decline in fossil fuel revenues. One possibility is seen in the export of green hydrogen. Using Algeria as a case study, this paper analyses how different levels of ambition in hydrogen exports, energy efficiency and fuel switching affect the cost-optimal expansion of the power sector for a given overall emissions reduction path. Despite falling costs for photovoltaics and wind turbines, the results indicate that in countries with very low natural gas prices, such as Algeria, a fully renewable electricity system by 2050 is unlikely without appropriate policy measures. The expansion of renewable energy should therefore start early, given the high annual growth rates required, which will be reinforced by additional green hydrogen exports. In parallel, energy efficiency is a key factor as it directly mitigates CO2 emissions from fossil fuels and reduces domestic electricity demand, which could instead be used for hydrogen production. Integrating electrolysers into the power system could potentially help to reduce specific costs through load shifting. Overall, it seems advisable to analyse hydrogen exports together with local decarbonisation in order to better understand their interactions and to reduce emissions as efficiently as possible. These results and the methodology could be transferred to other countries that want to become green hydrogen exporters in the future and are therefore a useful addition for researchers and policy makers. • The required strong capacity expansion for PV and wind is challenging, but feasible. • "Energy efficiency first" benefits both the local energy transition and H2 exports. • Fully renewable power systems require a suitable political framework. • Higher hydrogen exports might help to reduce the specific power system cost. • Fossil capacity expansion must be stopped to avoid lock-ins and higher future costs. [ABSTRACT FROM AUTHOR]