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Italian ‘Snam’ Latch on to SoutH2 for a Foothold in the European Green Hydrogen Market

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Italian ‘Snam’ Latch on to SoutH2 for a Foothold in the European Green Hydrogen Market

(3 Minutes Read)

Italian natural gas transmission and distribution company Snam says it is ‘concentrating its efforts’ on completing the SoutH2 corridor, which represents an opportunity for the company to establish itself as a key player in the green hydrogen market in Europe.

The Italian company Snam is leveraging its geographical proximity to Algeria, Tunisia, and Egypt to develop an ambitious green hydrogen supply program. The key project in this strategy is the SoutH2 corridor, which is expected to be operational by 2030 and play a central role in supplying green hydrogen to the European market.

The 3,200 km SoutH2 corridor will connect Algeria to Germany via Italy and Austria, with possible future extensions to Switzerland. The project is based on strategic partnerships with players such as Sonatrach, Sonelgaz, and the European companies VNG and Verbund. The network will combine 60 to 70% of existing pipelines with 30 to 40% of new infrastructure. With an import capacity of 4 Mtpa, SoutH2 could meet more than 40% of the import targets set by the REPowerEU program. In addition to its key role in Europe’s energy transition, the project benefits from accelerated permitting and European funding through the CEF-Energy program. SoutH2 will position Italy with its North African partners, as a key player in developing a green hydrogen market in Europe.

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The SoutH2 Corridor project is a 3,300 km hydrogen pipeline connecting North Africa, Italy, Austria, and Germany. Led by TSOs who each submitted Project of Common Interest submissions to the European Commission, it aims to supply competitive renewable hydrogen to European demand clusters. It utilizes >70% repurposed infrastructure, with new pipeline segments where necessary. The corridor has trilateral political endorsement, as well as strong support from companies involved in production (c. 2.5 Mtpa) and offtake of hydrogen along the whole corridor. The SoutH2 Corridor plays a vital role in enabling the transportation of both imported and domestically produced hydrogen.