TotalEnergies weighs exporting hydrogen from Tunisia to Europe

French energy giant TotalEnergies SE and Austrian utility Verbund AG are considering producing green hydrogen in Tunisia, before exporting the zero-emissions fuel by pipeline to Europe.

Under a memorandum of understanding signed with Tunisia’s government, Verbund and TE H2 — a joint venture 80% owned by TotalEnergies and 20% by Luxembourg’s Eren Groupe SA — will study producing green hydrogen in the North African country. The H2 Notos project would use electrolyzers powered by large onshore wind and solar farms, and supplied with desalinated sea water, to produce 200,000 tons of green hydrogen annually during its initial phase.

The gas would be exported through the SoutH2 Corridor, a hydrogen pipeline project connecting North Africa to Italy, Austria, and Germany, the companies said in a joint statement Tuesday. That link, which would entail more than 70% of repurposed pipelines, could be commissioned around 2030.  

Hydrogen has been touted by European policymakers in recent years as key to reducing the use of fossil fuels in industries such as steelmaking and curbing the region’s dependence on Russian natural gas. While green hydrogen projects have mushroomed on the continent, few have reached final approval stage as large-scale production and transport remain more expensive than gas.

“Europe and part of Asia are structurally short of decarbonized energy,” David Corchia, chief executive officer of TE H2, told reporters on a call. “The challenge is to align supply and demand in terms of price.”

Europe should help finance and subsidize such investment that contributes to its energy security, Corchia said. The first phase of the project would require “billions of dollars” of investment for the the construction of the hydrogen production plant, 3 gigawatts of renewable power capacity, and a pipeline between the south and the north of Tunisia, he said. 

A final investment decision might take place in 2027 at the earliest, Corchia said. 

Verbund, which holds a minority stake in the H2 Notos project, would be one of the buyers of the clean gas, while other companies in Germany and Austria are also interested, the TE H2 CEO said. 

TE H2 is also developing green hydrogen projects in countries such as Chile, Mauritania and Australia.