German Chancellor Olaf Scholz expressed his satisfaction on Thursday as Italy and Germany agreed to collaborate on the construction of a pipeline for transporting gas and hydrogen between the two countries.

The leaders emphasized the importance of diversifying energy supply and expanding supply networks in Europe to enhance energy security. This joint effort comes as European nations seek alternatives to address reduced energy exports from Russia.

Last month, Italy, Germany, and Austria signed a letter of support for a hydrogen-ready pipeline project spanning 3,300 kilometers (2,050 miles) from North Africa to Europe. Leading the initiative are four major European transmission system operators—Snam, Trans Austria Gasleitung, Gas Connect Austria, and Bayernets in Germany. The consortium responsible for building the infrastructure, named SoutH2 Corridor, includes Sea Corridor, a joint venture between Snam and Italian energy group Eni, which currently operates the gas pipelines connecting North Africa and Italy.

Italian Prime Minister Giorgia Meloni highlighted the importance of diversifying supply sources and establishing interconnected infrastructures, particularly in the Mediterranean region. Her vision is to transform Italy into an energy hub linking Africa with northern Europe.

The SoutH2 Corridor, with a designed capacity to transport 4 million tonnes per year of green hydrogen, is one of three projects being reviewed by the European Union as part of its transition to non-fossil fuels.

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