• New Sonatrach head vows shift toward renewables and resilience
• Plans include solar at oil sites, green hydrogen, carbon capture
• Algeria targets 30% renewables by 2035, but progress remains slow
  

Noureddine Daoudi, a geologist, has announced plans to align Sonatrach, Algeria’s national oil and gas company, with the country’s energy transition strategy. Appointed head of Sonatrach on Sunday, Oct. 26, 2025, Daoudi said during his inauguration that he aims to “build a stronger, more resilient company by investing in renewable energy,” a pillar of the group’s future growth strategy.

In a rapidly changing global energy landscape, Daoudi pledged that Sonatrach would innovate without losing sight of its core business in oil and gas. He linked this shift to modernizing the company and investing in its workforce, two other priorities he emphasized.

Algeria has long expressed its commitment to diversifying its energy mix. Authorities have established new institutions, including the Algerian Renewable Energy Company (SHAEMS), to lead solar projects and attract investors. The goal is to raise renewables’ share to 30% by 2035.

Progress, however, has been slow. According to the International Energy Agency (IEA), nearly all of Algeria’s electricity still comes from gas, while renewables account for less than 1% of total generation. Most planned solar projects remain in the tendering or contracting stages.

Daoudi plans to accelerate Sonatrach’s existing initiatives, notably the integration of solar power at oil sites, the development of new sectors such as green hydrogen, and continued investment in carbon capture and research.

The strategy aligns with government policy since 2021, reaffirming Algeria’s goal of expanding renewable energy. Sonatrach’s 2024 climate plan includes improving energy efficiency at its facilities and cutting methane and flaring emissions, showing how solar and carbon capture are gradually being integrated into its operations.

Yet major obstacles remain. A joint report by the Friedrich-Ebert-Stiftung foundation and the Transnational Institute notes that Algeria’s renewable rollout continues to be hampered by administrative delays, complex financing, and a lack of incentives for private investors.

Abdel-Latif Boureima