Summary:

On 1 December 2025, the SoutH2 corridor project, designed to transport Algerian hydrogen to Germany, reached a key milestone as the European Commission listed it among its priority cross-border energy initiatives of common European interest, alongside an offshore CO₂ storage project with Snam, Italy’s natural gas operator.  

The 3,300-kilometer SoutH2 corridor aims to deliver 4 million tonnes of Algerian hydrogen annually to Italy, Austria, and Germany via Tunisia, initially using existing infrastructure.   

Key stakeholders include Algeria’s Sonatrach, Italy’s Snam, Germany’s VNG, and Austria’s Verbund. The project, first formally endorsed by energy ministers in January 2025 and advanced through a July meeting of the companies in Algiers, reflects growing European interest in North African green hydrogen as part of energy transition plans.  

Outlook: 

Listing SoutH2 as a priority project enhances its financing and regulatory prospects, improving the likelihood of timely implementation. The corridor, if implemented, will inevitably strengthen Algeria’s role as a green energy supplier to Europe while creating potential benefits for Tunisia as a transit country.   

Project success will depend on continued coordination among multiple national and corporate stakeholders, timely infrastructure upgrades, and alignment with EU industrial and energy policies. If these conditions are met, SoutH2 could become a strategic component of Europe’s hydrogen supply chain over the next decade. With European efforts underway to more permanently move away from reliance on Russian energy products, North Africa is well-positioned to become a major supplier of Europe’s energy needs.  

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