Austria Signs Letter of Intent for Southern Hydrogen Corridor

PeopleOther ♦ Published: January 21, 2025; 15:19 ♦ (Vindobona)

In a pioneering initiative, Austria, Italy, Germany, Algeria, and Tunisia signed a declaration of intent for the construction of the “SouthH2 Corridor” in Rome today. This pioneering infrastructure project will transport green hydrogen from North Africa to Europe over a distance of 3,300 kilometers and make the continent's energy supply more sustainable and independent.

Germany, Algeria, Italy, Austria and Tunisia are pressing ahead with the development of a hydrogen import corridor from North Africa to Europe. / Picture: © www.south2corridor.net

The “SouthH2 Corridor” is not only a major technological project but also a major geopolitical one. The aim is to transport renewable hydrogen from sunny and windy regions of North Africa - particularly Algeria and Tunisia - via Italy to Austria and Germany. Today's memorandum of understanding marks an important extension of previous commitments, as Algeria and Tunisia are now formally part of the project.

The importance of this corridor is reflected not least in the ambitious figures: With a planned import capacity of over four million tons of hydrogen per year, the “SouthH2 Corridor” could cover more than 40 percent of the import target for 2030 set by the EU in the REPowerEU plan. The project is led by renowned companies such as Snam (Italy), Trans Austria Gasleitung (TAG), Gas Connect Austria (GCA), and Bayernets (Germany), which want to both convert existing natural gas infrastructure and build new pipelines.

Technical and political cooperation

The signing of the Memorandum of Understanding took place under the leadership of Italian Foreign Minister Antonio Tajani and Energy Minister Gilberto Pichetto Fratin. Jürgen Schneider, Head of the Climate and Energy Section at the Austrian Climate Ministry, took part on the Austrian side. The five participating countries pledged to meet every six months at a technical level to monitor and adjust the progress of the project.

“This project is a beacon for international cooperation in the energy sector. It connects countries and continents to create a sustainable energy future,” explained Antonio Tajani.

Green hydrogen as the key to climate neutrality

Green hydrogen is considered a decisive factor in the energy transition. It is produced from water by electrolysis, with the energy required coming exclusively from renewable sources. Due to its ideal climatic conditions, North Africa offers enormous potential for the production of green hydrogen. The EU sees this as an opportunity to reduce its dependence on fossil fuels and achieve its climate targets.

The “SouthH2 Corridor” takes an innovative approach by repurposing large parts of the existing natural gas infrastructure for the transportation of hydrogen. This will significantly reduce costs and construction time. In addition, new pipeline sections are to be built to handle the larger volumes of hydrogen. The system is scheduled to be fully operational by 2030.

Geopolitical significance of the project

The project also has a geopolitical dimension. It underlines the EU's efforts to integrate North Africa more closely into its energy policy and at the same time intensify trans-Mediterranean cooperation. Algeria and Tunisia benefit from new economic opportunities and technological innovations, while Europe strengthens its energy security.

For Austria, participation in the “SouthH2 Corridor” is an important step. “We must use the potential of green hydrogen to accelerate the energy transition and achieve climate targets. This project shows that international cooperation is the key to overcoming global challenges,” emphasized Jürgen Schneider.

Challenges and prospects

Despite the great opportunities, the partner countries face challenges. These include the technical complexity of the project, high investment costs, and the need to ensure political stability in North Africa. However, the countries involved are confident that the benefits outweigh the risks.

The “SouthH2 Corridor” could be a milestone on the road to decarbonizing Europe. Today's declaration of intent is a clear signal: Europe and North Africa are working together on a sustainable and secure energy future.

South2Corridor

Climate Ministry of Austria

Italian MFA