Algeria’s Minister of Energy and Mining, Mohamed Arkab, stated on Saturday that the nation has “huge potential” to become a regional center for hydrogen production.

“Preliminary information suggests Algeria has significant potential, allowing it to play a key regional role in this (hydrogen) area, thanks to its huge solar energy resources and wide and integrated power transmission networks,” Arkab said in a speech during Algeria’s 26th Energy Day.

Algeria has a substantial electrical network, as well as natural gas storage, distribution, and transportation infrastructure, as well as closeness to European markets.

Algeria’s government formed a working committee last year to further clarify its goal for hydrogen development.

Energy-rich Algeria, whose economy has been primarily reliant on oil and gas exports, is pursuing an energy transformation, aiming to create 15,000 megawatts of power from solar energy by 2035, thanks to its 2,000 to 3,900 hours of yearly sunlight.

Algeria is also attempting to diversify its revenue streams by tapping into phosphate. Algerian and Chinese corporations struck an agreement in March to form a joint venture to develop an integrated phosphates project with a $7 billion investment budget.