Algeria and the United Nations Development Programme (UNDP) have signed a cooperation project agreement to support state-owned energy company Sonatrach in reducing its methane emissions and exploring green hydrogen development. The agreement was signed on November 3, 2026, on the sidelines of a national workshop on climate finance and carbon markets. The project aims to strengthen Sonatrach's capacity to measure, report and verify methane emissions, while assessing the technical and economic feasibility of green hydrogen development.
The project agreement was signed by representatives of the Ministry of Hydrocarbons, the Ministry of Energy and Renewable Energies, the Ministry of Foreign Affairs, and the UNDP in Algeria. The ceremony was attended by high-ranking officials, including Miloud Medjelled, Secretary-General of the Ministry of Hydrocarbons, and Noureddine Daoudi, Sonatrach's Chief Executive Officer. The Ambassador of the United Kingdom of Great Britain and Northern Ireland to Algeria, James Downer, was also present.
The project consists of two main components. The first focuses on enhancing Sonatrach's capacity to measure, report and verify methane emissions through the installation of a fixed system for detecting and continuously monitoring fugitive emissions. The system will operate in accordance with international standards and best practices, including the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) framework. This will enable the early detection of methane leaks and generate accurate emissions data.
The second component involves an in-depth technical and economic feasibility study of green hydrogen potential. The study will assess available technological options, identify infrastructure requirements and examine possible scenarios for integrating green hydrogen into Sonatrach's value chain and industrial operations. The objective is to diversify energy solutions and explore new opportunities in the low-carbon energy sector.
The UNDP will directly oversee the project's implementation in coordination with Sonatrach, providing technical expertise and support to deliver the project's components. The initiative aims to promote technology transfer and develop national expertise in emissions monitoring and low-carbon energy solutions. This partnership reflects Algeria's efforts to strengthen the environmental sustainability of its energy industry and adapt to the global transition towards cleaner energy.
The agreement comes as Algeria seeks to reconcile its position as a major hydrocarbon producer with the growing demands of the global energy transition. By addressing methane emissions and exploring green hydrogen potential, Sonatrach aims to strengthen its environmental sustainability, enhance its international competitiveness and prepare for evolving global energy market requirements.
The partnership is part of broader efforts to reduce the carbon footprint of Algeria's energy industry and support the country's energy transition. The project's implementation is expected to inform targeted mitigation measures, improve transparency regarding Sonatrach's environmental performance and strengthen compliance with international requirements.
Key points
- Algeria and the UNDP have partnered to support Sonatrach in reducing methane emissions and exploring green hydrogen development.
- The project aims to strengthen Sonatrach's capacity to measure, report and verify methane emissions and assess the feasibility of green hydrogen development.
- The partnership reflects Algeria's ambition to reconcile its position as a major hydrocarbon producer with the growing demands of the global energy transition.
