Algeria Begins Feasibility Studies for Large-Scale Green Hydrogen Exports to Europe via Pipeline

Algeria's state-owned energy companies, Sonatrach and Sonelgaz, have signed a memorandum of understanding to initiate feasibility studies for the large-scale production of green hydrogen and the construction of a major pipeline to Europe. The project will be carried out in collaboration with a consortium of German, Italian, and Austrian companies.

The European companies involved include Italy's gas grid operator Snam, SeaCorridor (a joint venture between Snam and Italian firm Eni), German energy company VNG, and Austrian electricity provider Verbund. VNG has also signed a letter of intent to import renewable hydrogen from Algeria into Germany via the planned "SoutH2 corridor," a 3,300km pipeline network that will connect North Africa to Europe.

The pipeline networks in Italy, Austria, and Germany that will form part of the SoutH2 corridor have been designated as Projects of Common Interest by the European Commission, allowing the developers access to funding from the Connecting Europe Facility for Energy and an expedited permitting process.

The SoutH2 corridor, expected to be fully operational by 2030, aims to transport up to four million tonnes of hydrogen annually from North Africa, covering 40% of the EU's target of importing 10 million tonnes per year by 2030. Around 70% of the corridor will utilize repurposed gas pipelines.\

Algeria, already a key supplier of natural gas to southern Europe through the Medgaz pipeline to Spain and the Transmed pipeline to Italy, aims to meet 10% of Europe’s hydrogen demand by 2040. It plans to produce both blue hydrogen from natural gas and green hydrogen through renewable-powered electrolysis. Earlier this year, Germany committed €20 million ($21.5 million) to help Sonatrach build a 50MW green hydrogen pilot plant in Arzew.