Germany and Algeria agreed Thursday to deepen their energy partnership, with Chancellor Friedrich Merz announcing plans to push forward a major pipeline project that would carry North African hydrogen across the Mediterranean to Europe via Italy.
Merz made the announcement at a news conference in Berlin alongside Algerian President Abdelmadjid Tebboune, where the two leaders said they had agreed to substantially strengthen bilateral economic and energy ties.
"We have agreed to vigorously advance this project together with Italy, as well as other bilateral initiatives, over the coming months," Merz said, referring to the proposed hydrogen pipeline connecting Algeria to Germany through the Italian peninsula.
The chancellor underscored Algeria's growing strategic importance to Europe's energy landscape, describing the North African nation as the continent's second-largest supplier of pipeline gas.
Algeria has expanded its role as a key energy partner for Europe in recent years, particularly as the continent has moved to diversify away from Russian supplies following Moscow's invasion of Ukraine in 2022.
Hydrogen, widely seen as central to Europe's long-term decarbonization strategy, has become an increasingly important focus of the continent's energy diplomacy.
The European Union has set ambitious targets for importing green and renewable hydrogen as part of its broader push to achieve climate neutrality.
Beyond energy, Merz said Germany is also interested in joint opportunities in other sectors, including the sourcing of critical rare earth elements, materials that are essential to manufacturing electric vehicles, batteries, and advanced electronics.
Algeria holds significant deposits of minerals that European nations have been seeking to secure as part of broader supply chain diversification efforts.
The proposed hydrogen corridor would require close coordination with Italy, which would serve as a transit country and entry point into the European gas network. Merz framed the project as one of mutual benefit, describing it as carrying "great interest to both sides." No timeline or investment figures were announced at Thursday's news conference.