Tunisia, Algeria, Italy, Germany and Austria have just signed a joint declaration to press ahead with a plan to build a hydrogen pipeline linking North Africa and Europe.
The SouthH2 aims to transport green hydrogen from North Africa to Europe, strengthening energy cooperation and supporting the EU’s climate change objectives.
The declaration was formalized at a ministerial meeting in Rome and underlines the commitment to the SouthH2 Corridor.
The SouthH2 Corridor project, which has been included in the European Commission’s list of Projects of Common Interest (PCI), aims to establish a direct hydrogen pipeline spanning 3,500-4,000 kilometers. It will connect North Africa’s green hydrogen production sites directly with Italy, Austria, and Germany.
This extensive pipeline, predominantly comprising repurposed natural gas pipelines, is designed to transport up to 163TWh of green hydrogen annually to Europe. The majority of the pipeline in Europe, approximately 3,250 kilometers, will involve 60-70% conversion of existing natural gas pipelines, managed by the respective transmission system operators (TSOs).
Economic Diversification in Tunisia and Algeria
Dr. Philip Nimmermann, State Secretary at the German Federal Ministry for Economic Affairs and Climate Action (BMWK), described the SouthH2 Corridor as one of the “largest and most significant” renewable energy projects of our time. He emphasized the potential benefits, such as leveraging North Africa’s renewable energy capacities, advancing hydrogen technology in Germany, and supporting the European Union’s climate objectives.
The project also aims to foster economic diversification in Algeria and Tunisia, where German companies, along with others from Austria and Italy, are expected to play crucial roles. These partnerships are envisioned to future-proof industries, create new jobs, and accelerate the deployment of hydrogen infrastructure.
The official announcement, which confirms what sources told Reuters on Tuesday, marks a concrete step in the European Union’s strategy to secure supplies of renewable hydrogen by 2030 to help decarbonizes its most polluting industries.
The link, known as SoutH2, was given priority project status by the European Commission last year and is seen as an important step in developing a European market for the renewable fuel.
A €4 billion financial commitment
A group of companies, including Italian gas network operator Snam (SRG.MI), has joined forces to build the SoutH2 pipeline by the beginning of the next decade, with a financial commitment of more than €4 billion ($4.3 billion).
Last year, sources told Reuters that Italy was in preliminary talks with the government of Bavaria to supply gas and hydrogen to the southern German state, adding that Rome also wanted to sell energy to Austria.
The European Union aims to produce 10 million tons and import 10 million tons of green hydrogen by 2030 to replace fossil fuels, which emit planet-warming gases when burned.
Tunisia and Algeria are already moving forward with hydrogen initiatives, with Tunisia signing agreements last July to advance six production projects in collaboration with nine European companies, and Algeria embarking on a major production project with European partners.
Green hydrogen is produced by splitting water through electrolysis using renewable energy.
