Algeria, Tunisia Join Three European Countries in SoutH2 Corridor Project—Who Benefits?

Between promises of cooperation and development and warnings about the exploitation of the Global South for the benefit of the North, a new energy project connecting Europe, Tunisia, and Algeria has sparked debate over its benefits and risks.

This discussion follows the first ministerial meeting on the Southern Hydrogen Corridor (SoutH2 Corridor), held in Rome on January 21, 2025, where officials signed a joint political declaration describing the project as “strategic.”

The initiative includes Italy, Germany, Austria, Tunisia, and Algeria, with the signatories pledging to enhance cooperation in developing a corridor linking hydrogen production sites in Algeria and Tunisia to the European Union.

According to the declaration, the parties recognize Algeria and Tunisia's vast potential for renewable energy and green hydrogen production and emphasize the need to strengthen energy security between the region and the EU to support green growth.

The agreement highlights the importance of developing hydrogen infrastructure, accelerating the energy transition, and attracting investments to Algeria and Tunisia to stimulate local markets, create jobs, and foster innovation.

It also stresses the Southern Hydrogen Corridor's role in transporting hydrogen from Algeria through Tunisia to Europe and outlines the need to enhance technical capacities, develop necessary skills, secure funding, and mitigate risks.

The parties committed to policy coordination, knowledge exchange, and periodic follow-ups through a joint task force meeting every six months.

Algeria’s Commitment

During the event, Algeria’s Minister of Energy and Mining, Mohamed Arkab, reaffirmed the country’s commitment to developing its green hydrogen industry, leveraging its strategic location, abundant solar and wind resources, and advanced energy infrastructure.

Speaking to Algerian Radio on January 21, 2025, Arkab emphasized Algeria’s ambition to become a regional hub for green hydrogen production and export to Europe, aiming to diversify energy supplies and reduce carbon emissions.

He described the project as a “strategic opportunity” to strengthen energy ties between Algeria and Europe, calling for a favorable legal and regulatory framework, skilled workforce development, and increased investment to accelerate the transition.

Arkab also urged greater international cooperation to facilitate technology transfer and expand public-private partnerships, asserting that “this project embodies Algeria’s ambitious vision for sustainable development and climate resilience.”

The ministerial meeting included high-ranking officials, such as Italy’s Foreign Minister Antonio Tajani and Minister of Environment and Energy Security Gilberto Pichetto Fratin, Germany’s State Secretary for Economic Affairs and Climate Action Philipp Nimmermann, and Algeria’s Secretary of State for Renewable Energies, Noureddine Yassa. Tunisia was represented by its ambassador to Italy, alongside EU and Swiss representatives as observers.

Algerian Green Energy Association President Boukhalfa Yaici sees the meeting as a milestone, marking the project's shift from technical discussions to high-level political engagement, further strengthening the Algeria-Rome axis.

Speaking to Algeria’s Echorouk on January 20, 2025, Yaici noted that after a memorandum of understanding was signed by involved companies in Oran in October 2024, this ministerial gathering represents the next step in securing political and governmental backing.

He also pointed out that the EU’s participation as an observer suggests potential political and financial support, along with regulatory oversight.

“These developments indicate real momentum for this major project, reinforcing the Algeria-Rome partnership, which has grown significantly in recent years.”

Italy’s Objectives

Italian Foreign Minister Antonio Tajani emphasized that Rome is committed to achieving decarbonization and energy independence in a concrete and practical way, through a balanced energy mix that effectively integrates renewables, hydrogen, and nuclear energy.

Tajani highlighted that “Italy hosted the inaugural meeting of the Global Fusion Energy Group in Farnesina on November 5, 2024, in partnership with the International Atomic Energy Agency,” as per Avvenire.

“Today, we are taking another step in our energy strategy with the development of the Southern Hydrogen Corridor, strengthening Italy’s role as a European energy hub.”

Italian Minister of Environment and Energy Security Gilberto Pichetto Fratin echoed this sentiment, stating, “We are here to finalize an agreement that, in the spirit of European cooperation and in partnership with our closest allies, will deepen ties between the two shores of the Mediterranean, fostering stability, growth, and prosperity for our communities.”

According to Agenzia Nova, Fratin explained that the Southern Hydrogen Corridor (South H2) is a large-scale infrastructure project designed to transport green hydrogen over 3,300 kilometers from North Africa through Italy, Austria, and Germany to supply European markets.

“This agreement has great political and institutional value, because it reaffirms the commitment to cooperation aimed at the creation of a decisive work for the energy future of both continents. Italy is ready with its players to be central also in the hydrogen sector, a vector projected towards a renewable and sustainable future.”

Speaking at the ministerial meeting, he added, “We are focusing on renewable and low-carbon hydrogen, which Italy considers essential for decarbonization, in line with the commitments outlined in the National Integrated Energy and Climate Plan for 2030.”

Fratin also expressed confidence that the project could secure funding from the EU’s Connecting Europe Facility for Energy (CEF-Energy)—a financing program aimed at supporting investments in new and upgraded cross-border energy infrastructure across Europe.

“The Joint Declaration of Intent is a document that reaffirms the commitment of Italy, Germany, Austria, Algeria, and Tunisia to advancing the Southern Hydrogen Corridor, linking North African production sites with the European Union,” he concluded.

A New Form of Exploitation

The European Union is heavily investing in renewable energy and green hydrogen to reduce its dependence on Russian gas and establish itself as a leader in the sector, according to Ilyes Benammar, a member of Tunisia’s Working Group for Energy Democracy.

“The EU views geographically close Africa, with its vast renewable energy potential, as a resource for green hydrogen production,” he told Al-Estiklal.

“This entire push is nothing more than a modern extension of European colonial expansion into the southern Mediterranean, reminiscent of the 19th century, with the same goal—exploiting natural resources and maintaining dominance.”

Benammar noted that the Tunisian government aims to produce over eight million tons of green hydrogen by 2050, with the majority destined for export to northern Mediterranean countries.

To meet European market demands, he revealed that around €117.2 billion would be invested in building the necessary infrastructure, including renewable energy plants, desalination facilities for hydrogen extraction, pipelines for water and hydrogen transport, and equipping Tunisian ports for export operations.

These investments, according to Benammar, would largely be financed through debt from global financial institutions such as the European Investment Bank, the European Bank for Reconstruction and Development, and the World Bank—Tunisia’s key partner in implementing such projects, which align with its neoliberal economic policies.

Benammar warned that, like many other countries engaged in green hydrogen exports, “Tunisia risks becoming nothing more than a backyard energy reservoir for the North, reinforcing dependency and reviving colonial-era resource exploitation.”

Still, “Europe would reap additional benefits, as financing these projects would mobilize capital while ensuring that the required technologies and equipment would be manufactured in Europe, securing new markets for its industries and controlling emerging supply chains.”

“Tunisia is expected to provide natural resources such as land and water at minimal cost while bearing the environmental and social consequences—yet another example of the global division of labor, where the North exports technology, and the South supplies raw materials and cheap labor,” he concluded.