SoutH2-Corridor could ease European hydrogen supply tightness as pipeline moves forward

LONDON (ICIS)–Four transmission system operators (TSOs) have published statements in support of political alignment for the development of the southern hydrogen corridor “SoutH2-Corridor”, which will connect North Africa with Italy, Austria and Germany for hydrogen transportation via pipeline. ICIS data shows that the hydrogen pipeline could ease European hydrogen supply tightness by 2030, when the route is due to be online

Energy ministries in Germany, Austria and Italy signed a letter of support for the SoutH2Corridor, progressing the status of the individual project of common interest (PCI) components of the line to the European Union, according to the TSO statements.

The corridor holds a capacity of 4 million tonnes/year of hydrogen, the equivalent of 133.2TWh/year, which will reach Italy, Austria, and Germany via North Africa. These volumes could reduce supply tightness over the upcoming period by ensuring hydrogen demand will be met.

According to ICIS analyst forecasts, Italian, Austrian and German domestic demand could amount to 124TWh/year by 2030, of which approximately 80TWh is accounted for through domestic supply. This makes up a 45TWh yearly shortfall, which North African SoutH2-Corridor volumes could comfortably fill in considering the assumed maximum capacity.

ICIS data shows potential export capacity from Algeria, Morocco, and Tunisia to Italy and Spain is expected to reach 363TWh/year by 2050, of which 213TWh are expected to travel to Italy via Tunisia.

Of these volumes, 100TWh are expected to reach Austria, and 37TWh Germany, before flowing further towards Netherlands. Austria is also expected to export 37TWh to Slovakia by 2030, which is in turn set to source hydrogen to Poland and the Czech Republic.

DIVERSIFYING ENERGY SUPPLY

Increasing volumes via the SoutH2Corrdior would contribute towards REPowerEU’s renewable energy targets, which aim to make Europe independent of Russian fossil fuels before 2030, with the corridor covering 40% of REPowerEU’s import target for renewable hydrogen.

According to a statement by the TSOs, 70% of the link is set to use repurposed gas assets, with the corridor expected to be fully operation by 2030. Repurposing gas infrastructure for hydrogen transport can help ensure supply tightness for renewables is reduced across key European hubs.

The SoutH2-Corridor consists of four individual PCI, all under the provision of the four TSOs:

– “Italian H2 Backbone” by Snam Rete Gas

– “H2 Readiness of the TAG pipeline system” by Trans Austria Gasleitung GmbH

– “H2 Backbone WAG + Penta-West” by Gas Connect Austria GmbH

– “HyPipe Bavaria – The Hydrogen Hub” by bayernets GmbH

Efforts are currently being made to boost European pipeline infrastructure to this end, with seven European companies having recently signed a letter of intent to form a new north-south corridor in Germany.

Currently, Germany is the largest hydrogen consuming country in Europe. Increasing North African import volumes will play a key role in ensuring demand is met, as Germany eyes increasing energy from renewable sources. German hydrogen usage is expected to reach 90-110TWh/year by 2030, the bulk of which is set to be imported from other global regions, according to the country’s government.

Separately, on 27 April, RAG Austria launched the world’s first pure hydrogen storage facility in a porous reservoir- the Underground Sun Storage in Gampern. The facility is set to supply the Austrian grid with 4.2GWh of summer hydrogen during the winter months, according to statements made by chief executive Markus Mitteregger for ICIS.

Furthermore, ICIS analysis shows that by 2050 hydrogen demand clusters will centre around central and northern Europe, with pipeline infrastructure needed in place to meet this demand.

Gasunie and Thyssengas also announced plans for a 400km north-south hydrogen corridor to be built by 2028 through a combination of converting existing transport lines coupled with new infrastructure.