Summary:

On 23 October 2024, Algerian national energy firm, Sonatrach, announced that it had signed a Memorandum of Understanding (MoU) with a number of European partners to assess the feasibility of the green hydrogen value chain from Algeria to Europe through the Southern Hydrogen Corridor 2.

This project aims to transport hydrogen produced in North Africa to Austria and Germany via Italy, through a planned 3,300-kilometer pipeline.

In Algeria, Sonatrach will be in charge of the green hydrogen production, while Sonelgaz will power the necessary electrolysers. On the European side, VNG, a German energy firm, will manage hydrogen distribution in Europe. In Italy, Snam and SeaCorridor will be responsible for the transport across the Mediterranean. In Austria, Verbund will oversee the infrastructure.

Outlook: 

Backed by the European Union through the REPowerEU plan, the Southern Hydrogen Corridor aims to strengthen Europe’s energy security by diversifying energy sources and reducing dependence on fossil fuels.

Algeria’s participation in this project reflects the country’s intention to move forward with developing its renewable energy sector alongside its fossil fuels and adapting its offering of energy products to the needs of the European market.

Algeria remains a key player in European energy agendas despite the deteriorating political relations between the two parties in relation to the Western Sahara issue as well as the ongoing conflicts in Gaza and southern Lebanon.

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