Summary:

On 6 January 2025, a consortium of energy companies led by Dubai-based H2 Global Energy, reached an agreement with the Tunisian government to produce green hydrogen and ammonia. 

The total expected investment for the project is $6 billion with construction expected to begin in 2028 and production in 2031. The production capacity of the project is estimated at 180,000 tons of green hydrogen per year. 

Waleed Al-Hallaj, the Chief Commercial Officer of H2 Global Energy, stated that the project underscores Tunisia’s potential as a leader in green hydrogen and ammonia production. 

The agreement comes a few months after the 29 July signing of six Memoranda of Understandings (MoUs) with multiple energy firms to produce green hydrogen for export to the European Union (EU).  

Outlook: 

This most recent green hydrogen deal highlights how the renewable energy sector in Tunisia is becoming a realm for competition and cooperation with both Eastern and Western energy firms. 

These international initiatives to invest in this strategic sector in Tunisia will help the country implement its strategy to reduce dependency on fossil fuels and derive 35 percent of its energy sources from renewable energy by 2035.  

Tunisia remains a high-potential partner for Europe alongside other North Africa countries as the EU seeks to diversify its energy supply chain away from Russia due to the ongoing war in Ukraine. Tunisia is geographically positioned close to the heart of Europe, making it an attractive partner for offshore energy production. 

While these projects are encouraging to foreign investors, it will take several years for them to produce economic gains for the country and help recover from the difficult economic situation that has continued in post-revolution Tunisia.  

Tunisia must also deal with popular concerns over these projects, as many activists and researchers think of them as a new kind of colonialism that will benefit Europe while exporting value from Tunisia.  

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