Algiers, May 8 (IANS): Algerian Energy and Mining Minister Mohamed Arkab said that the North African country has "great potential" to become a regional hub of hydrogen production.

"Preliminary information shows Algeria has great potential, allowing it to play a prominent regional role in this (hydrogen) field, through its vast resources of solar energy and extensive and integrated networks for the transmission of electricity," Arkab said.

In addition to a large electricity network, Algeria boasts storage, distribution and transportation infrastructure for natural gas and geographical proximity to European markets, Xinhua news agency reported.

Last year, the Algerian government established a working group to better define its vision for hydrogen development.

Energy-rich Algeria, whose economy has relied heavily on oil and gas exports, is seeking energy transition, as the country aims to generate 15,000 megawatts of electricity through solar energy by 2035 given its 2,000 to 3,900 hours of annual sunshine time.

Phosphate is another natural resource Algeria is trying to tap to diversify its income sources.