African and European Countries Reaffirm Support for New Green Hydrogen Pipeline Project

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African and European Countries Reaffirm Support for New Green Hydrogen Pipeline Project

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Green hydrogen pipeline (© Shutterstock/Audio und werbung)
Green hydrogen pipeline (© Shutterstock/Audio und werbung)

Italy, Austria, Germany, Algeria, and Tunisia reaffirmed Tuesday their commitment to developing a pipeline that will transport renewable hydrogen from North Africa to Europe, according to the Italian energy ministry.

The planned 3,300-kilometer (2,050-mile) pipeline, dubbed the SouthH2 Corridor, aims to ship green hydrogen from the African coast to Italy and then northward to Austria and Germany.

Ministers and officials from the five nations, along with Ditte Juul Jørgensen, Director-General for Energy of the European Commission, participated in meetings and discussions regarding the project.

The European Commission recognizes the SouthH2 Corridor as a Project of Common Interest (PCI), potentially opening the door for EU funding for parts of the infrastructure.

The project will utilize more than 65% repurposed existing infrastructure, with new pipeline segments constructed where necessary. Organizers say the corridor has political backing and strong support from companies involved in hydrogen production and offtake along the entire route.

The pipeline is expected to be operational by 2030.

“SouthH2 Corridor will further boost Italy’s role as a European energy hub,” said Antonio Tajani, Italy’s Deputy Prime Minister and Minister of Foreign Affairs.

The announcement comes as green hydrogen projects in Europe have faced recent challenges, including persistently high costs and uncertainty surrounding future demand.

Denmark, for instance, announced in October that it now expects to commission a cross-border green hydrogen pipeline to Germany in 2031, three years later than originally planned.

Shell and Equinor have also abandoned plans for low-carbon hydrogen production and transportation in northern Europe due to insufficient demand.

Research firm BloombergNEF said last month that green hydrogen will likely struggle to compete on price with gray hydrogen, which is produced from natural gas, until at least 2050—a much longer timeframe than previously anticipated.

BloombergNEF’s recent report on hydrogen prices found that green hydrogen, produced via electrolysis using renewable energy, will not achieve price parity with gray hydrogen by mid-century, as costs have more than tripled from the 2023 forecast.