Hydrogen corridor momentum: North Africa key to Europe
A vast hydrogen pipeline stretching from North Africa to central Europe is fast becoming a cornerstone of Europe’s clean energy strategy, with African nations set to play a critical role by setting up a hydrogen production value chain underpinned by solar and wind energy technology.
The SoutH2 Corridor, a 3,300-kilometre pipeline connecting Algeria and Tunisia to Italy, Austria and Germany, has gained significant traction following its inclusion in the European Commission’s first Projects of Common Interest (PCIs) list under the revised Trans-European Network for Energy (TEN-E) Regulation.
Spearheaded by Transmission System Operators (TSOs) Snam, Trans Austria Gasleitung (TAG), Gas Connect Austria (GCA) and Bayernets, the project aims to deliver up to four million tonnes per annum (Mtpa) of renewable hydrogen to Europe’s industrial heartlands, potentially supplying over 40% of the EU’s 2030 hydrogen import target under the REPowerEU plan.
The strategy received a major boost in January 2025, when Italy, Austria, Germany, Algeria and Tunisia signed a Joint Declaration of Political Intent in Rome on the SoutH2 Corridor.
The five countries declared their intention to continue work on the development of the initiative during the Penta Ministerial Meeting organised at Villa Madama by the Italian Ministry of Foreign Affairs and International Cooperation and the Italian Ministry of Environment and Energy Security.
This Joint Declaration of Political Intent formalised the commitment – previously made by Austria, Italy and Germany – of Tunisia and Algeria to support the development of the project, strengthening the strategic energy partnership between Europe and North Africa.
Following the Ministerial Conference, a Business Forum brought together companies from the participating countries prospectively interested in the hydrogen supply chain, also considering the strategic partnership between Europe and Africa.
The four individual projects of the SoutH2 Corridor, recognised by the European Union as PCIs, were presented to highlight the opportunities created by this new infrastructure for companies along the supply chain.
How the hydrogen corridor will operate
The pipeline will link North African solar and wind-powered hydrogen production to hard-to-abate demand centres such as Augusta and Taranto in Italy, Vienna and Linz in Austria and Burghausen and Ingolstadt in Germany.
It is envisaged that more than 65% of the corridor will use repurposed natural gas infrastructure, significantly reducing costs and enabling rapid deployment. Storage facilities along the route are also expected to bolster security of supply.
The SoutH2 Corridor is part of the broader European Hydrogen Backbone (EHB) initiative, which outlines five major hydrogen supply corridors to be developed by 2030.
These include two key import routes from North Africa (Corridors A and B), alongside corridors from the North Sea, the Baltic region, and Eastern Europe.
The EHB identified more than 12 million tonnes of potential EU hydrogen supply by 2030 – surpassing the EU’s domestic target of 10 million tonnes – with additional import potential from outside Europe.
Speed is of the essence to ensure the development of these supply corridors by 2030, and EHB identified five key actions needed immediately:
- Foster development of new and repurposed hydrogen infrastructure
- Unlock financing to fast-track hydrogen infrastructure deployment
- Simplify and shorten planning and permitting procedures
- Intensify energy partnerships with exporting, non-EHB countries
- Facilitate integrated energy system planning
In March 2025, the 5th Trilateral Working Group Meeting reported that responsible ministries and public authorities of the SoutH2 Corridor as well as the TSOs are on track and highly committed to implementing the SoutH2 Corridor.
Furthermore, progress was made on company and ministry level with the four TSO projects progressing on technical studies.
The participants of the trilateral meeting reached an agreement on key enabling factors for the successful realisation of the SoutH2 Corridor, such as a national legal framework regarding financing scheme, unbundling, and certification as Hydrogen Transmission Network Operators (HTNOs).
Plans afoot to set up hydrogen sectors elsewhere in Africa
Africa’s hydrogen potential is not limited to North Africa. Countries like South Africa and Namibia are emerging as key players in the global hydrogen market. South Africa sees green hydrogen not only as an export opportunity, but as a vital domestic decarbonisation tool for its coal-heavy industrial sector.
Chemical giant Sasol and steelmaker ArcelorMittal expressed interest in adopting green hydrogen to reduce emissions. Sasol’s ambition is to lead the energy transition in Southern Africa by transitioning to low-carbon feedstocks and integrating renewables to create new value pools, such as green hydrogen, green ammonia, and sustainable fuels by 2050.
Sasol’s first large-scale renewable energy project, the 69MW Msenge Emoyeni Wind Farm, located in Bedford, Eastern Cape, supplies electrons wheeled through South Africa’s national grid to Sasolburg Operations in the Free State with the intention of producing green hydrogen.
Namibia has taken early steps towards securing demand through long-term purchase agreements, including a high-profile partnership with the EU, which is said to have the potential to attract N$400 billion (around $21 billion) in European private investments for the Southern African country’s green hydrogen sector.
In January 2025, EU Ambassador to Namibia Ana Beatriz Martins announced that some of the seven to nine projects currently underway in the country are expected to reach final investment decisions by late 2025.
These projects are spearheaded mainly by European companies. Experts warn that such agreements are essential to ensure host countries are not burdened with unsustainable debt from green hydrogen infrastructure. Instead, wealthier nations are urged to shoulder more of the early-stage risks.
“Rather than relying on tax breaks or concessional loans alone, equitable hydrogen trade should focus on inclusive benefits and active local participation,” noted academics Anthony Black, Glen Robbins and Sören Scholvin in an article published on The Conversation.
That view is echoed by the United Nations Industrial Development Organization (UNIDO), which is working with governments and industry to build hydrogen value chains that are both economically and socially sustainable.
At the World Hydrogen Summit in May 2025, UNIDO and other stakeholders reaffirmed their commitment to fostering global hydrogen trade, with a focus on job creation, industrial competitiveness and equitable growth in developing economies.
A November 2024 analysis by the International Solar Alliance (ISA) Readiness Assessment of Green Hydrogen in African Countries points out that, with their vast renewable energy potential, Egypt, Morocco, Namibia and Ethiopia could become major green hydrogen hubs.
The ISA report advised that many countries have announced Government-to-Government (G2G) partnerships between the EU and other nations for the development of green hydrogen ecosystems, covering functions such as partial project financing, project construction, research and development, skilling, manufacturing, and commodity offtake.
According to the report, countries with substantial mineral reserves can leverage this opportunity to integrate the hydrogen and metal processing sectors, producing ‘green metals’ like green steel.
Egypt and Morocco, the report highlights, have a strong industrial base that can potentially offtake a significant quantum of domestically produced green hydrogen, thereby providing a market de-risking mechanism.
Hydrogen’s global growth spurt
The global hydrogen project pipeline is growing rapidly. The Hydrogen Council’s Hydrogen Insights 2024 report reflects that the number of clean hydrogen projects across the world had risen from 228 in 2020 to 1,572 by May 2024.
Investments in projects that have reached Final Investment Decisions (FID) have surged seven-fold to $75 billion in just four years.
Recent breakthroughs as at October 2024 include a pilot project in the United Arab Emirates (UAE) where EMSTEEL, in partnership with renewable energy firm Masdar, successfully produced green steel using hydrogen instead of natural gas.
The companies said green hydrogen has the potential to reduce CO2 emissions in steelmaking by up to 95%.
The renewable hydrogen produced by the project was certified by Avance Labs, the hydrogen code manager accredited by the International Tracking Standard Foundation, in accordance with the recently released ISO 19870 methodology for hydrogen.
This development was considered a first for the Middle East and North Africa (MENA) region and aligns with the UAE’s goals of becoming a major hydrogen and green steel production hub.
In February 2025, South Africa, in what was described as a “defining moment” for the country’s green economy, the government and its research partners published the Environmental Impact Assessment (EIA) Guideline for green hydrogen projects and the South African Green Hydrogen Potential Atlas.
Developed over two years in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the Council for Scientific and Industrial Research (CSIR) and GFA Consulting Group, these mechanisms will provide critical guidance for responsible and sustainable green hydrogen development, said the government.
With abundant solar and wind resources, strategic port infrastructure, and a central location on global shipping routes, South Africa is uniquely positioned to become a green hydrogen powerhouse and with Namibia could become a key hub in the South.
As momentum builds, African countries stand at a crossroads: either as passive exporters or as active participants in a new global energy economy.
With the right policy frameworks, partnerships and investments, the continent could become a central node in the world’s decarbonised energy future – not only powering Europe but transforming its own industrial landscape in the process.
Cover photo: Construction of the Hylron Oshivela facility commenced in April 2024 and has been completed in under a year. Source: Hylron
