China Accelerates Clean Energy Plans in North Africa

The war in Iran and the subsequent closure of the Strait of Hormuz have prompted China to urgently re-evaluate its energy strategies, particularly its reliance on the Persian Gulf. As a result, Beijing is now fast-tracking infrastructure projects across North Africa, transforming long-term plans into immediate necessities. This shift is part of a broader strategy to create a Mediterranean hub for a green-energy supply chain, aimed at safeguarding its economy against future energy disruptions.

According to reports, China’s renewed focus includes investments from the oilfields of Algeria to battery factories in Morocco and the industrial base of Egypt. These projects are not just about energy; they are integral to China's Belt and Road Initiative (BRI), which seeks to expand its influence through infrastructure development. The urgency of this initiative has increased as the geopolitical climate shifts, particularly with the instability in the Middle East.

In Algeria, a key partner in the BRI, Chinese state-owned firms oversee multibillion-dollar infrastructure and energy portfolios. Notable among these is a long-standing production-sharing partnership between Sonatrach, Algeria's state oil company, and Sinopec, a major Chinese oil and gas enterprise. This partnership has been instrumental in developing Algeria's energy sector, which is expected to play a central role in the Mediterranean energy hub.

One of the flagship projects is the US$437 million naphtha processing unit at the Arzew refinery in northwestern Algeria. This facility is expected to boost local production capabilities and serve as a stepping stone for more extensive energy projects in the region.

Meanwhile, the proposed US$4.7 billion El Hamdania megaport in Cherchell is another ambitious project developed by China State Construction Engineering and China Harbour. This megaport is envisioned as a strategic anchor for Beijing’s maritime strategy in the Maghreb region, enhancing logistical capabilities for energy exports and imports.

As the global push for clean energy accelerates, China has also signaled its intent to double its clean energy development by 2035. This announcement came on April 17, 2026, as governments worldwide respond to the fossil fuel crisis exacerbated by the Iran War. The commitment to clean energy reflects a growing recognition of the need for sustainable energy sources in the face of geopolitical uncertainties.

Observers note that China’s aggressive expansion into North Africa is not merely an economic endeavor but also a strategic move to secure energy supplies and diversify its energy sources. By establishing a Mediterranean energy hub, China aims to reduce its dependence on the volatile Persian Gulf, which has long been a focal point of its energy strategy.

In addition to energy security, the development of a green energy supply chain in North Africa aligns with China’s broader environmental goals. The nation has been under increasing pressure to reduce its carbon emissions and transition to cleaner energy sources. By investing in renewable energy projects, such as solar and wind farms in North Africa, China can bolster its green credentials on the international stage.

China’s involvement in North Africa also has implications for local economies. The influx of Chinese investment is expected to create jobs and stimulate economic growth in countries like Algeria and Morocco. This economic boost is particularly important in a region where unemployment rates are high and economic opportunities are limited.

Yet, the expansion of Chinese influence in North Africa has raised concerns among some local stakeholders. Critics argue that the influx of Chinese firms could undermine local businesses and lead to a form of economic dependency. There are also fears about environmental impacts and the sustainability of large-scale infrastructure projects.

In response to these concerns, Chinese officials have emphasized their commitment to sustainable development and collaboration with local governments. They argue that their investments will help secure energy supplies for China and contribute to the development of local industries and infrastructure.

As the situation continues to evolve, it how these developments will play out in the broader geopolitical arena. The intersection of energy, economics, and politics in North Africa will be a key area to watch in the coming years.

In the aftermath of the Iran War, the urgency of establishing a Mediterranean energy hub has never been more apparent. With China leading the charge, the region could become a central player in the global energy transition. The stakes are high, and the outcomes will likely shape the future of energy security and economic development in North Africa.

As of now, the global push for clean energy development continues to gain momentum, with China at the forefront of these efforts. The commitment to doubling clean energy development by 2035 signals a shift in China’s energy strategy and in its approach to global environmental challenges. With North Africa as a focal point, the implications of these developments will resonate well beyond the region.