Algeria, Tunisia, Italy, Austria and Germany signed a ministerial declaration in Algiers on Thursday on the SoutH2 project, a planned corridor designed to carry up to 4 million tonnes of green hydrogen a year from Algeria to Europe over roughly 3,000 kilometres. The volume would represent around 10% of Europe’s expected hydrogen demand in 2040, according to Algeria’s official APS news agency.
Algerian Energy and Renewable Energy Minister Mourad Adjal said the project had “reached an important stage with the launch of the feasibility study”. The study is expected to identify potential production sites in Algeria, estimate costs, assess transport options and examine European demand. Its first results are due in 2027.
The declaration does not mark the start of construction. It provides for a dedicated technical secretariat, supported by the United Nations Industrial Development Organization (UNIDO), to coordinate work between the five participating countries.
From Algeria to Germany
SoutH2 is planned to connect Algeria with Germany through Tunisia, Italy and Austria.
Part of the route is expected to rely on existing natural gas infrastructure that would be upgraded or converted to carry hydrogen.
Green hydrogen is produced by splitting water through electrolysis using renewable electricity. Europe plans to use it particularly in sectors that are difficult to electrify directly, including parts of heavy industry, ammonia production for fertilisers and some forms of transport.
German companies already involved
The declaration was signed just days after a 21-25 September mission by ten German companies to Algeria and Tunisia focused on the SoutH2 corridor, hydrogen production, storage and related infrastructure.
Industrial cooperation between Algeria and Germany had already expanded in July, when Sonatrach signed memoranda of understanding with Robert Bosch and Siemens Energy. The agreements covered areas including electrolysers, green hydrogen production, equipment maintenance, compression technology and training.
SoutH2 dates back to October 2024, when Sonatrach and Sonelgaz signed an agreement with Germany’s VNG, Italy’s Snam and SeaCorridor, and Austria’s Verbund Green Hydrogen to study the feasibility and commercial viability of producing green hydrogen in Algeria and exporting it to Europe.