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In 2023, Algeria launched its national green hydrogen strategy with a goal of producing 1.2 million tons annually by 2040. The SoutH2 Corridor will facilitate exports to Europe via a 3,300 km pipeline.

The strategy includes generating 40 terawatt-hours of hydrogen, with 30 terawatt-hours aimed for export, potentially fulfilling 10% of Europe's demand. Algeria is currently developing a semi-industrial hydrogen production facility in Arzew, backed by Germany and the EU.

Additionally, Eni plans to invest €8 billion in Algeria over the next four years, focusing on hydrogen and renewable energies. Algeria ranks second in Africa for low green hydrogen production costs, but challenges remain regarding investment and export competitiveness.