SONATRACH and World Bank Group sign MoU on flaring, methane and green hydrogen
- The memorandum was signed by SONATRACH, the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC).
- Its objectives include reducing gas flaring and methane emissions and accelerating the energy transition through development of green hydrogen and its derivatives.
- The scope also covers petrochemicals and fertilizers and contemplates collaboration to strengthen SONATRACH’s international expertise, notably in Africa.
- The MoU focuses on technical assistance, best-practice sharing, techno-economic studies, financing-option assessments and skills development, with SONATRACH overseeing implementation.
Parties and intent
SONATRACH and two members of the World Bank Group, the IBRD and the IFC, signed a memorandum of understanding to identify and develop partnership opportunities focused on emissions reduction and energy transition.
Scope
The MoU targets reduction of gas flaring and methane emissions, and seeks to speed up the energy transition through development of green hydrogen and its derivatives. It also includes cooperation in the petrochemicals and fertilizers sectors and considers steps to enhance SONATRACH’s international expertise, notably in Africa.
Cooperation areas and implementation
Planned activities under the memorandum include technical assistance, sharing of best practices, conducting techno‑economic studies, assessing financing options and developing skills. SONATRACH will act as the beneficiary and ensure operational supervision of implementation.
Context
The agreement was signed on the sidelines of a workshop on climate finance and carbon markets held in Algiers.
Source: SONATRACH