Green Hydrogen in Tunisia: Ambitious Energy Strategy amidst Implementation Challenges

In the southern Tunisian city of Gabes, a green hydrogen project is in development, aiming to transform the local energy and economic landscape. However, this initiative faces objections from residents concerned about potential environmental risks, given Gabes’ history with polluting chemical industries.

Tunisia is experiencing significant shifts in its energy policy, prompted by dwindling fossil fuels and a heavy reliance on natural gas imports. The National Renewable Energy Plan seeks to increase the share of renewable energy in the country's energy mix, aiming to generate 35% of electricity from clean sources by 2030. Green hydrogen is emerging as a promising option within this framework. The Ministry of Industry and Energy has launched a comprehensive strategy for the sector, including ambitious goals to produce approximately 8.3 million tons of green hydrogen annually by 2050—6.4 million tons earmarked for export to Europe and 1.9 million tons designated for domestic consumption.

Promising Opportunities 

The Tunisian government expects its green hydrogen strategy to reduce energy dependency, turn the country into an energy exporter, shrink the trade deficit, and strengthen foreign currency reserves. The projects are anticipated to generate around 430,000 job opportunities, both directly and indirectly.

One of the most notable initiatives announced is the signing of memoranda of understanding (MoU) in 2024 with multiple European corporations including France's Total Energy and Austria's Farbund. This MoU aims to establish green hydrogen production complexes with an initial investment of up to €8 billion. The goal is to produce 200,000 tons of green hydrogen annually, with plans to expand production to one million tons each year in subsequent phases.

Environmental engineer and climate expert Hamdi Hached emphasizes that producing green hydrogen fuel through electrolysis using renewable energy sources, such as solar and wind power, represents an ambitious technological advancement. Green hydrogen consumes large volumes of water through electrolysis, a process whereby electricity splits water into hydrogen and oxygen, making water conservation essential in Tunisia’s already water-stressed environment. 

Tunisia’s energy system currently relies heavily on imported natural gas. In 2022, natural gas accounted for 97.5% of the electricity mix, with 48% imported. This dependence undermines energy security and contributes to a rising trade deficit, which increased from $6.54 billion in 2024 to $7.54 billion in 2025, according to Tunisian authorities.

Photo by: Sujin Jetkasettakorn

Hached stresses the importance of processing hydrogen locally for economic benefits, insisting, "Simply exporting raw hydrogen will not serve the Tunisian economy."

Hached addressed the worries about water usage, highlighting that the project will utilize desalinated seawater rather than fresh water. He argued that many of the concerns are mostly baseless and not supported by credible scientific evidence. Hached added that water consumption must be evaluated across all energy sources, not just hydrogen, stating, “All other forms of energy consume water.”

Ali Kanzari, Senior Expert in Renewable Energy & Energy Efficiency, mentioned that in the medium and long term, green hydrogen is expected to attract foreign investment to Tunisia, develop local expertise in electrolysis and storage technologies, create jobs, and enhance Tunisia's position as a source of clean energy while reducing emissions, thus achieving Tunisia's carbon reduction goals.

He added that the success of these projects requires a robust infrastructure, a clear legal framework, and the avoidance of increased pressure on natural resources, particularly land and water.

Kanzari recommended integrating modern technologies to minimize water consumption in electrolysis processes and to recycle treated wastewater. Regarding land, he advised focusing on desert or non-agricultural lands and establishing a legal framework that ensures the participation and compensation of local communities.

Implementation challenges 

Despite the promising opportunities, significant challenges persist in executing the green hydrogen strategy. Tunisia is facing severe water scarcity, using 96% of its renewable water supply, meaning almost all available water is already being consumed. This has led the government to rely on seawater desalination for hydrogen production—an energy-intensive and costly process. The country must also prioritize substantial infrastructure investments. Experts indicate that creating a robust regulatory and legislative framework is crucial to enticing investment, standardizing criteria, and ensuring the safety of new chemical processes.

As part of its national hydrogen roadmap, Tunisia plans to develop a domestic and export pipeline network, with investment costs projected between €9.6 and €13.4 billion. Implementing the plan is expected to require a comprehensive funding package of approximately €120 billion, to be allocated in phases. The Energy Transition Fund—established in 2013 under Finance Law No. 54-2013—serves as a financial mechanism for Tunisia's energy transition, offering subsidies, loans, and equity.

“In discussions about green hydrogen, it is crucial to move beyond the simplistic narrative of it being a universal solution for clean energy”, said Rim Ben Khalifa, a journalist and researcher in environmental mediation.

She emphasizes the need to critically examine the entire production chain, highlighting the importance of considering the sources of electricity used for electrolysis, the availability of water, and the broader implications for local communities. “In countries like Tunisia, where both water and land resources are already under significant stress, we must seriously question whether these green hydrogen projects truly address national needs or simply serve export interests,” Ben Khalifa added.

Ben Khalifa noted that green hydrogen projects can pose serious challenges as producing hydrogen requires large quantities of water, which could increase pressure on scarce water resources or lead to desalination at an additional environmental cost.

Dr. Mohamed Ghazi Ben Jemia, who holds a PhD in structural geology and has over 38 years of experience in the energy sector, stresses that the project's vital infrastructure includes seawater desalination plants, hydrogen storage facilities, and power transmission networks. He advocates for concentrating desalination and hydrogen production facilities in coastal areas to streamline logistics and enhance export efficiency. He also suggests that the existing legislative framework should be amended expeditiously to regulate green hydrogen production, thus accelerating project implementation and fostering private investment.

Ben Jemia further asserts that, despite the hurdles in implementing green hydrogen, it is the most viable option for storing renewable energy, as it can be stored in gaseous form or converted into a liquid for easier transport via specialized facilities, pipelines, or ships. 

Green hydrogen presents Tunisia with a significant opportunity to address longstanding barriers within the energy sector challenges while enabling the country to pursue sustainable economic growth through manufacturing and exports. However, the country's success in realizing this potential will depend on its ability to address various technical and financial challenges, establish a clear legislative framework, and ensure the active participation of civil society and the private sector.