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Five countries sign SoutH2 political declaration in Algiers
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Germany, Algeria, Austria, Italy and Tunisia met in Algiers and signed a joint political declaration of intent on the SoutH2 hydrogen corridor. The declaration seeks to deepen regional and Euro‑Mediterranean cooperation on green hydrogen by creating a structured dialogue among governments, transmission system operators, regulators, finance bodies, producers and buyers. Germany was represented by State Secretary Frank Wetzel. The signatories supported establishing a UNIDO‑hosted secretariat to serve as a central coordination platform for intergovernmental and private‑sector engagement.
Key takeaways
- Who signed: Germany, Algeria, Austria, Italy and Tunisia signed a joint political declaration of intent on the SoutH2 hydrogen corridor in Algiers.
- Institutional step: The signatories supported creation of a dedicated secretariat at UNIDO to coordinate the corridor.
- Related European moves: Spain has put in place the initial stretches of a hydrogen transport backbone valued at €389 million, while Germany has launched a third international funding call for hydrogen projects worth €30 million.
- ALTEH2A status: A letter of intent for the ALTEH2A (Algeria to Europe Hydrogen Alliance) was signed on 14 October 2024 by SONATRACH, Sonelgaz, VNG AG, Snam S.p.A., SeaCorridor S.r.l. and VERBUND Green Hydrogen GmbH.
Table of contents
What the Algiers declaration sets out
The five governments closed their second ministerial conference by signing the joint declaration of intent on the SoutH2 corridor. The declaration presents SoutH2 as a vehicle to foster closer regional ties, coordinate energy policy and enhance industrial competitiveness across North Africa and Europe. It identifies security and diversification of supply as primary objectives and urges stepped‑up cooperation among the corridor’s stakeholders to develop competitive, sustainable and interconnected hydrogen flows.
The declaration signed in Algiers describes itself as a political declaration of intent rather than a legally binding contract and contains no quantified financial commitments. The signatories committed to a regular, structured dialogue to align planning, permitting, market design and demand stimulation so that North African production can be connected to European industrial and transport markets. Germany was represented at the meeting by State Secretary Frank Wetzel.
ALTEH2A and the private‑sector partners named
Delegates discussed the ALTEH2A project — the Algeria to Europe Hydrogen Alliance — as a concrete industrial pathway to supply European demand within the SoutH2 framework. A letter of intent for ALTEH2A, dated 14 October 2024, was signed by SONATRACH, Sonelgaz, VNG AG, Snam S.p.A., SeaCorridor S.r.l. and VERBUND Green Hydrogen GmbH. Those signatories combine North African state producers with European infrastructure and hydrogen companies.
The ALTEH2A item was presented to ministers as an integrated, multi‑party project to expand green hydrogen production in Algeria for the European market. While the LOI indicates industry interest, the text signed in Algiers is again described as a political declaration with no quantified financial commitment attached; detailed project terms and financing remain to be published by the companies and governments involved.
How cooperation will be organised and the next institutional steps
Signatories backed creating a dedicated secretariat at the United Nations Industrial Development Organization to serve as a central platform for intergovernmental cooperation and private‑sector involvement. The secretariat is intended to coordinate the corridor’s technical, regulatory and financing workstreams and to help establish the conditions for cross‑border hydrogen trade, demand aggregation and competitive supply.
The ministers also called for closer engagement among transmission system operators, national regulators, financial institutions, producers and buyers so that infrastructure planning, market rules and investment signals are aligned. They pointed to related European initiatives designed to expand demand and transport capacity: Spain has contracted initial sections of a hydrogen backbone valued at €389 million, and Germany has opened a third international hydrogen project funding call totalling €30 million — examples used to show parallel development of supply‑side and demand‑side enablers in Europe.
Case for and against delivery
The case for
- The declaration creates a formal forum for coordination and names UNIDO as a clearing house, reducing transaction costs and improving prospects for coherent cross‑border planning.
- Industry engagement through the ALTEH2A LOI demonstrates private‑sector interest from both North African producers and European infrastructure players, which can accelerate project development once financing and offtake are clarified.
The case against
- The declaration contains no quantified financial commitments, leaving a large funding gap to be filled before projects move from intent to execution.
- Regulatory and market harmonisation across multiple countries and jurisdictions remains unresolved; differing permitting, grid rules and certification systems could slow cross‑border trade and pipe or shipping projects.
What to be careful about
- No binding finance: the Algiers text is a political declaration and contains no quantified funding commitments for projects such as ALTEH2A.
- Regulatory divergence between North African producers and European buyers could delay permits, certification and cross‑border transport.
- Demand risk: structured and sustainable demand for renewable hydrogen is cited as a target, but concrete offtake contracts were not published alongside the declaration.
- Infrastructure bottlenecks in production, electrolysis capacity and export routes remain unresolved pending detailed project plans.
The bottom line
The Algiers declaration formalises political intent among five governments to build a SoutH2 hydrogen corridor and assigns UNIDO a coordinating role, but it stops short of project‑level commitments. The ALTEH2A LOI shows industry interest across producers and European infrastructure players, yet financiers, offtakers and detailed permitting plans remain to be published. Delivering a functioning corridor will require translating the political framework into binding contracts, published project terms and regulatory alignment between North African and European jurisdictions.
What to watch
- Watch for public terms and timelines from the partners behind ALTEH2A; no date has been set for when the companies will publish a full project proposal.
- Watch for UNIDO to announce the secretariat’s mandate, staffing and launch timetable; no date has been set for the secretariat to begin operating.
Frequently asked questions
What is the SoutH2 hydrogen corridor?
SoutH2 is a political and industrial initiative linking North Africa and Europe to develop green hydrogen supply chains; five governments — Germany, Algeria, Austria, Italy and Tunisia — signed a joint political declaration of intent in Algiers to advance cooperation.
Who are the named partners in the ALTEH2A letter of intent?
The ALTEH2A LOI, signed on 14 October 2024, lists SONATRACH, Sonelgaz, VNG AG, Snam S.p.A., SeaCorridor S.r.l. and VERBUND Green Hydrogen GmbH as signatories.
What role will UNIDO play in the corridor?
Signatories supported creating a dedicated secretariat at the United Nations Industrial Development Organization (UNIDO) to act as a central platform for intergovernmental cooperation and private‑sector involvement; no launch date for the secretariat has been announced.
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