Sunday 23 February 2025 
✏️ BY: Dr. Hana Saada
Algiers, Algeria | June 23rd, 2024 — An investment of €210 million has been unlocked to finance the German segment of the SoutH2 project, which aims to transport green hydrogen from Algeria to Germany, passing through Tunisia, Italy, and Austria.
In a public statement released two days ago, the German bank KfW IPEX, which is contributing one-third of the investment for Bayernets, emphasized the significance of this step for the future of the SoutH2 corridor. “The Augusta pipeline is a crucial step to ensure the long-term energy supply for Bavaria and Baden-Württemberg and will enable future hydrogen transport,” the statement read. It added that “Augusta will be connected to the planned SoutH2 corridor, a joint initiative by four European transmission network operators from Germany, Austria, and Italy. Starting in 2030, green hydrogen will be transported from Algeria and Tunisia.”
European Consortium and Strategic Importance
Bayernets is part of a European consortium comprising four companies: Snam in Italy, Trans Austria Gasleitung (TAG) and Gas Connect Austria (GCA) in Austria, and Bayernets in Germany. These companies are responsible for the European segment of the SoutH2 pipeline, which is already listed as a project of common interest eligible for European Union funding.
Paving the Way for Future Projects
This development paves the way for other companies to undertake similar projects, accelerating the transition to this new energy source across Europe. Germany has already taken the lead by signing significant agreements with Algeria to develop this sector. Beyond adapting the transport infrastructure, the two countries are working on pilot projects within this sector. “A reference plant dedicated to the production of this future energy resource will be built by the German side in Algeria,” recently announced Thomas Eckert, EU ambassador to Algeria.
This represents a new market opportunity for Algeria, whose hydrogen production costs are among the lowest, fueling European interest in Algerian hydrogen. Additionally, Algeria’s proximity to future markets and the availability of transport infrastructure being adapted for the European Union’s future clean energy needs contribute to this interest. To meet its ambitions, Algeria is preparing a development program for this sector, aiming to produce 40 TWh, covering 10% of the European market’s needs for this fuel.
A Vital Corridor for Europe
The SoutH2 corridor is deemed a vital artery for Europe, mobilizing four countries for its implementation: Germany, Italy, Austria, alongside Algeria and Tunisia as future energy suppliers. These five countries will soon convene to discuss the project’s launch preparations, especially for the southern part of Europe. According to the EU, the SoutH2 corridor will contribute to energy supply security and diversify energy imports in Europe, serving as an important element for exporting green energy from Algeria.
This project underscores the growing collaboration between Algeria and European nations, emphasizing the strategic importance of green hydrogen in the future energy landscape and solidifying Algeria’s role as a key player in the global energy transition.
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