The SoutH2 Corridor—which connects renewable energy resources in North Africa with European industrial hubs in Italy, Austria and Germany—has made plenty of progress in recent months.

In late October, several major European energy firms signed a memorandum of understanding with Algerian oil giant Sonatrach aimed at accelerating the project, which was designated a project of common interest by the European Commission last year. Earlier in the summer, French energy firm TotalEnergies also announced a partnership with the Tunisian government on a 200,000t green hydrogen project in the south of the country.

“The SoutH2 Corridor represents a step towards establishing the necessary infrastructure for a hydrogen economy in Europe, reinforcing Africa’s emerging role as a renewable energy supplier and supporting the transition to sustainable energy across multiple sectors,” said Cristina Martorana, partner at independent law firm Legance.

Connecting the dots

The 3,000km hydrogen pipeline project forms a vital initiative for the EU and is designed to broaden the bloc’s energy sources and support its climate objectives. The SoutH2 Corridor will supply up to 4mt/yr of green hydrogen when it launches in 2030, aligning closely with the EU’s REPowerEU strategy and building resilience across Europe’s energy landscape.

“The SouthH2 corridor will foster collaboration between countries in Southern Europe to create a cohesive hydrogen market” Dahan, Norton Rose Fulbright

“One of the Corridor's distinctive strategies is to focus on reusing existing gas infrastructure—about 70% of the pipeline—to facilitate hydrogen transport and make it a cost-effective solution,” said Martorana. “This focus on reusing infrastructure not only lowers costs, but also provides access to regions in North Africa where hydrogen can be produced competitively due to favourable solar and wind conditions.”

The pipeline project will extend first from the Hassi R’mel region in southern Algeria, where Sonatrach has already heavily invested in infrastructure. The pipeline then carries on through Hassi Messaoud in Algeria and Sfax in Tunisia before crossing the Mediterranean Sea to Italy. North African green hydrogen will enter the Italian Hydrogen Backbone, comprising approximately 2,300km of pipeline, 75% of which will be repurposed from existing infrastructure. After meeting domestic demand, the hydrogen supply will then extend northwards into central Europe.

“The SouthH2 corridor will foster collaboration between countries in Southern Europe to create a cohesive hydrogen market,” explained Mathieu Dahan, counsel at global law firm Norton Rose Fulbright. “This regional cooperation can lead to shared resources, technology transfer and coordinated policies—enhancing the effectiveness of hydrogen initiatives.”

Domestic backing

Most North African governments are already preparing to take advantage of the SoutH2 Corridor to attract investments and enhance their position as energy suppliers to the EU. This includes the creation of appropriate legal and regulatory frameworks and significant pilot projects. 

“Algeria aims to produce 1.2mt/yr of hydrogen, fostering existing partnerships with Italy (the Galsi project) and Germany (Sonatrach’s 50MW solar project),” said Eugenio Tranchino, partner at international law firm Watson Farley & Williams.

Algeria, in particular, has used its technical sources and favourable production conditions to develop a national hydrogen development strategy. “Algeria’s goal is to supply about 10% of Europe’s hydrogen needs by 2040,” explained Martorana. “At the Italy-Africa summit in January, Algerian Foreign Minister Ahmed Attaf emphasised Algeria’s commitment to cooperating with Italy on renewable energy projects, including the SoutH2 corridor.”

Tunisia has already signed a number of agreements to promote its role in the hydrogen sector, including the H2 Notos project with ACWA Power of Saudi Arabia. “[The country] plans to produce 8.3mt/yr of green hydrogen by 2050 (6mt for Europe) and is investing in renewable energy plants with electrolysis,” continued Tranchino.

Eager to join the race, further west, Morocco announced in March that 1m hectares would be allocated to green hydrogen projects, while in January the Italian government approved a feasibility study for the Green Corridor that could transport Moroccan green hydrogen to Central and Eastern Europe, via the Port of Trieste.

Mounting opposition

The initiative is not entirely without controversy, however. Green hydrogen projects in North Africa face challenges, with critics arguing the EU's promotion primarily benefits the bloc itself and will perpetuate social and economic injustices in the region. There are also concerns about the environmental impact and land grabbing in water-scarce regions due to the expected use of significant amounts of water and land for green hydrogen production. 

“Activists in Tunisia are resisting foreign-led projects and calling for energy sovereignty based on local needs,” explained Tranchino. “Although EU institutions deny the existence of colonialists, there are concerns about the potential spread of these protests in North Africa.”  

1.2mt/yr – Algeria’s production target

Tunisia’s energy landscape is facing a dual challenge: financial strain on the state utility (STEG) and significant public opposition to the SouthH2 corridor. “Rising oil and gas imports, which grew from 5% of consumption in 2010 to 50% in 2022 have left STEG heavily dependent on costly Algerian gas, and struggling financially due to tariff issues and low public payment compliance,” continued Dahan.

Simultaneously, green energy projects, including those involving hydrogen, are being criticised for land appropriation in Southern Tunisia, displacing communities without delivering clear local benefits, emphasised Dahan. “These projects often mirror traditional resource extraction, focusing more on exporting energy to Europe than addressing Tunisia’s own energy needs. Residents argue that the government’s actions—seizing communal and private lands to facilitate these projects—prioritise foreign investors over citizens, fuelling regional inequality and perpetuating exploitation.”

Offsetting the risks  

The precedent was first set in the early 2000s, when Tunisia's first wind power project in Bourj Essalhi displaced residents through forced land reclassifications and coercive lease agreements under Ben Ali's regime. Farmers and herders lost essential income as wind turbines compromised their agricultural lands.

“Although Tunisia’s revolution freed people from the regime’s direct threats, their prolonged struggle with STEG underscores concerns that today’s ‘green’ initiatives may repeat past injustices under the guise of sustainable development,” said Dahan.

Rising opposition to green energy projects in Tunisia could profoundly influence similar initiatives throughout North Africa. If public resistance continues, the trend risks discouraging investors, delaying timelines and raising operational costs as communities push back against perceived exploitative practices.

Governments may need to enhance regulatory frameworks, emphasising transparency, fair compensation and local involvement to address these concerns. Additionally, policy adaptations could include implementing environmental and social safeguards to protect community lands and resources, potentially leading to a shift in North Africa's renewable energy strategies.

“Without addressing these underlying socio-economic and environmental grievances, green energy expansion risks escalating into broader resistance movements, which will impact regional stability,” added Dahan.

Overcoming barriers

Another challenge will be repurposing the infrastructure itself. “Since hydrogen’s molecular properties can damage pipelines originally designed for natural gas, retrofitting existing pipelines to safely transport hydrogen requires significant investment and technological upgrades,” said Martorana.

Securing binding transportation commitments from European offtakers such as Germany and Austria is another key challenge. These commitments will be essential to guarantee the use of the pipeline's hydrogen capacity and spread the economic risk, making the investment more viable for transport operators. In the absence of such agreements, the project could be subject to delays or financial risks that make implementation difficult.

Economic sustainability is also a concern. “The high cost of producing green hydrogen still limits widespread corporate participation,” continued Martorana. “Hydrogen is primarily found in nature as a compound to other elements, and its extraction is an energy-intensive process. Although this is a renewable, it is both costly and resource intensive, making hydrogen difficult to afford and scale. The achievement of competitive prices is likely to depend on the availability of large-scale, low-cost production capacity.”

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Author: Marat Aslan