Italy, Austria, Germany, Algeria, and Tunisia have reaffirmed their commitment to the development of the SouthH2 Corridor, a 3,300-kilometer pipeline project aimed at transporting renewable hydrogen from North Africa to Europe.
This significant development was announced following a meeting attended by ministers and officials from the participating countries, alongside Ditte Juul Jørgensen, Director-General for Energy of the European Commission. The SouthH2 Corridor has been designated a Project of Common Interest (PCI) by the European Commission, signifying its strategic importance and eligibility for potential EU funding.
The project leverages existing infrastructure, utilizing more than 65% of repurposed infrastructure with new pipeline segments constructed where necessary. It has garnered strong political support and enjoys significant backing from companies involved in hydrogen production and offtake throughout the corridor.
The SouthH2 Corridor is expected to be operational by 2030, solidifying Italy’s position as a key energy hub within Europe.
While the SouthH2 Corridor project demonstrates significant progress, the broader landscape for green hydrogen development faces challenges. Recent reports from BloombergNEF indicate that green hydrogen production costs are currently higher than those for gray hydrogen (produced from natural gas), with price parity not expected until after 2050.
Despite these challenges, the SouthH2 Corridor project represents a crucial step towards a more sustainable and secure energy future for Europe.