The SoutH₂ Corridor is emerging as a flagship project in Europe’s hydrogen strategy. A 3,300 kilometer pipeline is set to transport up to 163 terawatt-hours of green hydrogen annually – starting in 2030 – from North Africa through Italy and Austria to Southern Germany.
If realized, the project could cover up to 40 percent of the EU’s hydrogen targets and serve as the backbone of a competitive and resilient hydrogen market. At ees Europe 2025, five experts from infrastructure and industry – including project operators from the SoutH₂ Corridor – discussed the key factors for successful implementation. The focus was on political framework conditions, financing models and the importance of multinational collaboration.
Why is the SoutH₂ Corridor considered the most promising route for bringing green hydrogen to Central Europe?
Dr. Stefan Kaufmann, Senior Advisor at Horváth & Partner: Currently, pipelines are the most efficient and competitive way to transport hydrogen – especially from regions with lower production costs, like North Africa. In order to supply our industrial centers with large volumes of affordable and reliable hydrogen, we need to utilize the existing pipeline sections in North Africa and Italy and establish hydrogen corridors. This would also enable green hydrogen to start flowing from Germany to Central Europe within five to seven years. That would be a realistic timeline – provided we act now. It would not only strengthen energy logistics, but would also ensure the competitiveness of European industry by providing it with the stable and affordable hydrogen supply it needs. Pipelines offer continuity, scalability and, in the long run, lower transportation costs than sea transport. Simply put, for the green hydrogen economy to work, we have to start by building the infrastructure.
Piero Ercoli, Executive Director of the Decarbonization Unit at Snam: Europe can – and should – do more in terms of domestic production. But the reality is that this continent will always need to import energy. Take Italy, for example: Electricity demand stands at around 300 terawatt hours, while gas demand is double that, at 600 terawatt hours. Even with efficiency gains, that gap can hardly be covered by renewable energies alone – and that is without factoring in the additional oil demand.
Experience has shown how much supply security depends on a diversified import portfolio. That is why, in addition to domestic production, we also need a solid import strategy. Long-term, complementary partnerships – especially with neighboring countries – are essential and, if devised with foresight, can last for decades. The best path forward is to diversify not just importers, but also partners and technologies.
Timo Bollerhey, Developer and co-founder of H2Global, Managing Director of Hintco GmbH: I believe that the question of whether to import hydrogen and its derivatives or to meet demand through European production is misguided. The reality is that we currently have a shortfall of millions of tons of green hydrogen, both from domestic and external output. Hydrogen presents an opportunity to establish new, diversified partnerships with countries like Canada, Australia, or India. This kind of international diversification is key to energy security.
On the supply and demand side, the initiative H2Global supports the creation of a market. The initiative acts through a temporary intermediary, Hintco's Hydrogen Intermediary Trading Company, using a double auction with hydrogen and its derivatives. This gives suppliers long-term cash flow security at a guaranteed price, for example—the basis for making investment decisions today. Buyers, on the other hand, can gain access to affordable green molecules through Hintco's demand auctions. The presumably negative difference in costs between Hintco's supply and demand auctions is offset by public subsidies. These types of pragmatic tool help the market grow. We need to work on all fronts simultaneously – not one after the other.
Timo Bollerhey: At our recent ‘H2Global Roadshow’, where we asked potential suppliers of hydrogen and its derivatives outside Europe about the biggest obstacles to exporting to Europe, the clear answer was: European regulation. The delegated acts under RED II/III are very Eurocentric, create complexity and uncertainty of interpretation, and consequently deter international partners.
For non-European suppliers, the requirements are often difficult to meet, which means that Europe's regulations threaten its position in the global hydrogen market. Without a pragmatic interpretation of the regulations and careful adaptation, we risk becoming mere spectators. Unless adjustments are made, we risk remaining mere spectators. The laws must be implemented more pragmatically so that they do not hinder the market. At the same time, the regulatory framework must provide a stable and predictable environment – so this is definitely a dilemma that we in Europe have unnecessarily created for ourselves.
Franz Helm, Managing Director of VERBUND Green Hydrogen GmbH: Austria is in a strong position to play a central role in the distribution of hydrogen across Europe. Our internationally well-connected gas transmission network gives us the opportunity to participate in the development of the European Hydrogen Backbone. The Southern Corridor, in turn, makes it possible to connect large hydrogen producers in North Africa, via Italy and Austria, with consumers in Central Europe. At the same time, we must not neglect domestic production in order to remain resilient and ensure a diverse energy mix.
VERBUND is currently developing a diversified production portfolio for hydrogen generation. In Austria and Germany, local projects are being implemented to meet short-term demand. In these countries, our focus lies primarily on on-site and near-site projects that guarantee a direct and reliable supply to our project partners. To drive this transformation, we plan to invest €5.9 billion in the green transition over the next three years. This year alone, nearly €2 billion will go into renewable energy, grid flexibility, and green hydrogen.
Dr. Stefan Kaufmann: To be honest, Baden-Württemberg has been late to the game. I started advocating for the SoutH₂ Corridor back in 2020 or 2021, but at the time, the focus was almost exclusively on ports in Northern Germany. Southern Germany has no direct access to the sea, which is why the pipeline route through Italy and Austria is just so important. Bavaria got involved early, while Baden-Württemberg procrastinated. Baden-Württemberg has come on board now, but more commitment is needed. There is a strong demand from the cement, mechanical engineering and chemical industries, but without regional coordination and infrastructure planning, we risk falling behind. Developing a hydrogen economy is not just a federal responsibility; it requires leadership at state level, too.
Dr. Stefan Kaufmann: A functioning hydrogen market needs to make use of all available options – production in Europe, a pipeline import infrastructure and ammonia solutions. The SoutH₂ Corridor is part of the solution, but is far from the only stable hydrogen infrastructure in Europe.
Piero Ercoli: When it comes to hard-to-decarbonize sectors, we need to be, figuratively speaking, in the fast lane. Let us not forget that our target industries require large volumes of affordable hydrogen quickly. Implemented correctly, hydrogen can secure and even strengthen Europe’s industrial base.
Timo Bollerhey: You can compare the project to the German autobahn. The SoutH₂ Corridor is the truck lane: slower, but built to carry heavy loads. Other energy carriers like ammonia or methanol, on the other hand, represent the fast lanes. What we need is a continuous hydrogen highway – with no speed limits.
