Algeria's Sonatrach has signed a memorandum of understanding with several partners to assess the viability of a green hydrogen value chain from Algeria to the EU via the proposed SoutH2 Corridor, the company said.

The SoutH2 Corridor project aims to take hydrogen produced in North Africa to Austria and Germany via Italy through a planned 3,300-km pipeline.

Sonatrach signed the MOU with Algeria's state-owned utility Sonelgaz, Germany's VNG, Austria's Verbund Green Hydrogen and Italy's Snam and Seacorridor.

"The SoutH2 Corridor will play a major role in reducing energy dependence on fossil fuels and promoting an energy transition towards a low-carbon and sustainable economy," Sonatrach said in the statement.