Tunisia: PPP, ELMED and the ambitious MoU Toward Green Hydrogen and Renewable Energy

September 3, 2024
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During an interview conducted at the 3rd Steering Committee of the MED-GEM Network held at the headquarters of Hydrogen Europe in Brussels last June the 10th 2024, Mr. Belhassen Chiboub, Director General of Electricity and Energy Transition at the Ministry of Industry, Energy, and Mines of Tunisia, shared his country’s ambitious goals for green hydrogen and energy transition. This discussion highlights the key strategies and partnerships that could position Tunisia as a major player in the energy transition in the Mediterranean.

 

We have established a roadmap for the development of green hydrogen with a target of 8.3 million tons by 2050,” said Mr. Belhassen Chiboub, introducing the key aspects of Tunisia’s strategy. “Six million tons will be for export, and 2.3 million tons will be for the local market.” This roadmap is part of a strategic vision in which Tunisia aims not only to meet its internal needs but also to establish itself as a key supplier to Europe.

 

To realise this vision, Tunisia relies on strong public-private partnerships. “All the structuring of the project, from water production, desalination, renewable production, Electrolysers, and green hydrogen production, should be carried out by several companies within a public-private partnership framework,” Mr. Chiboub insisted. The Tunisian state will primarily act as a facilitator by establishing the necessary legislative and fiscal frameworks to encourage foreign investments. This collaborative approach is crucial for attracting investments and sharing risks, particularly for large-scale projects like green hydrogen.

 

Another crucial aspect of Tunisia’s energy strategy is the ELMED project, which aims to create an electrical interconnection between Tunisia and Italy. “The ELMED project is strategic for the relationship between the European Union and Tunisia,” said Mr. Chiboub, adding that this project would stabilise electrical grids and facilitate the export of renewable energy to Europe.

 

Supported by the European Union with initial funding of 307 million euros, the ELMED project is estimated at a total of 840 million euros, with the remainder shared between European: BEI (45M EUR), BERD (45M EUR), KfW (35M EUR) and Tunisian operators. This interconnection is a significant asset for Tunisia, not only for diversifying its energy sources but also for strengthening its position in the European market.

 

To achieve its goals, Tunisia requires continuous support from the European Union. “We have prepared a Memorandum of Understanding (MoU)with the European Union to strengthen cooperation in renewable energy,” announced Mr. Chiboub. This MoU, which has been signed during the 21st edition of the Tunisia Investment Forum (TIF) held on June 12-13, 2024, provides an enhanced cooperation for the development of energy infrastructure.

Countries covered:

  • Tunisia