Posted on 06 Jun 2025
Steelmaker Tosyali Algeria is exploring the launch of an integrated project to produce green hydrogen from renewable energy for use in green steel production, Kallanish understands.
A new MOU is expected to be signed between the Algerian state-owned oil company Sonatrach, its compatriot utility Sonelgaz, US-based Hecate, and Tosyali to move the project forward in two phases. These will comprise an initial feasibility study followed by full project development.
According to Sonatrach, the initiative supports the country’s energy transition goal and follows a meeting held late last month at its headquarters, attended by its chief executive Rachid Hachichi; David Wilhelm, ceo of Hecate Renewable Energies; Alp Topçuoğlu, member of the board of directors of Tosyali Algeria Iron and Steel Company; and several senior executives.
The initiative builds on two MOUs signed in 2024 – one with Hecate on 29 April for a renewable energy feasibility study, and another with Tosyali on 24 July – to explore green hydrogen production for Tosyali’s steel complex.
Details on the potential green hydrogen production capacity are yet to be revealed.
Tosyali Algeria says it’s taking “firm steps” towards becoming one of the world’s pioneers in green steel production with its investments in advanced direct reduced iron (DRI) technology and access to green hydrogen. Although the company already runs a DRI plant capable of operating on 100% hydrogen, it remains unclear if the fuel is currently used.
Green hydrogen is used as a reducing agent in DRI production, which traditionally relies on fossil fuels such as coal and natural gas. DRI is used as feedstock in electric arc furnaces (EAF) to produce steel.
Source:Kallanish
