Algeria, Tunisia join Southern Hydrogen Corridor project

From the newsletter

Algeria and Tunisia have joined the Southern Hydrogen Corridor project (SoutH2 Corridor), a 3,300 km pipeline starting from Algeria and reaching Germany through Tunisia, the Mediterranean Sea, Italy, and Austria. The project aims to supply low-cost green hydrogen to Italy, Austria, and Germany.

• The two countries' involvement in the project was formalized with the signing of a joint declaration of intent in Rome, during the inaugural meeting of government representatives from the five countries. This follows a similar declaration made in 2023 by the Energy ministers of Germany, Austria, and Italy.

• Expected to be operational by early 2030, the project is set to transport 163 terawatt-hours of green hydrogen annually from North Africa to Europe. This volume is projected to fulfill at least 40% of the REPowerEU import target of 10 million tonnes by 2030.

More details

• The project has been granted Projects of Common Interest (PCI) status, indicating its significance in helping the EU achieve its energy policy and climate objectives of having affordable, secure, and sustainable energy for its people and aligning with decarbonization goals of the Paris Agreement.

• The development of the project is supported by four Transmission System Operators (TSOs) – Snam in Italy, Trans Austria Gasleitung (TAG) and Gas Connect Austria (GAC), and Bayernets in Germany.

• According to the EU Commission, the project is expected to use 65% of infrastructure repurposed from existing natural gas pipelines with new segments added where necessary, thereby making the development cost effective.

Our take

• The involvement of Algeria and Tunisia in the SoutH2 Corridor project aligns with the growing trend of European countries leveraging Africa’s abundant renewable energy resources to accelerate their clean energy transition. With Europe aiming to be carbon neutral  by 2050, green hydrogen has emerged as a cornerstone of this ambitious goal.

• Algeria and Tunisia’s entry into the green hydrogen sector highlights Africa’s growing prominence in the global clean energy landscape. These North African nations join other leading green hydrogen producers on the continent, including Kenya, Namibia, South Africa, Mauritania, Egypt, and Morocco, further cementing Africa’s role as a key player in the renewable energy transition.

• The inclusion of North Africa in the SoutH2 Corridor highlights Africa’s pivotal role in the global energy transition. With the Paris Agreement setting a 2050 carbon neutrality target, countries are accelerating their shift to clean energy—where green hydrogen stands out as a cornerstone. In this push, the EU is increasingly tapping into North Africa’s vast renewable energy potential to advance its decarbonization goals.