Algerian state-owned Sonatarch and Italian Eni are teaming together to produce green hydrogen, as a part of their efforts to reduce their carbon emissions, Reuters reported.

The two companies also plan to establish a technological cooperation with a focus on hydrogen based on an agreement they signed in March.

Eni and Sonatarch outlined a joint assessment roadmap of the project’s commercial and technical feasibility.

The pilot project aims to use renewable-generated electricity to produce hydrogen.

The two companies will consider using the water produced from oil fields for the hydrogen-producing electrolysis process. This is a consideration to preserve Algeria’s water supply.