The governments of Italy and Germany have agreed to move ahead with the construction of a proposed gas pipeline, reported Reuters, citing German Chancellor Olaf Scholz.

The pipeline will also enable the supply of hydrogen between the two countries.

Scholz said during a press conference with Italian Prime Minister Giorgia Meloni: “Strengthened cooperation on diversifying energy supply is very important for me. Expanding supply networks in Europe will benefit us all and certainly increase energy security.

“For that reason I am pleased that we have agreed to press on with the work on a new natural gas and hydrogen pipeline between Italy and Germany.”

Last month, Italy, Germany and Austria agreed to support the development of a hydrogen-ready pipeline between North Africa and Europe.

The proposed 3,300km project is led by four European transmission system operators including Snam, Trans Austria Gasleitung, Gas Connect Austria and Bayernets in Germany.

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Snam earlier stated that the project, named SouthH2 Corridor, will have the capacity to deliver 40% of an EU hydrogen import target set for 2030, reported Reuters.

Last year, Reuters reported that Germany plans to develop a 1,800km hydrogen energy pipeline network by 2027, as the country looks to source cleaner energy and diversify its supplies to reduce its dependence on Russian gas.

The project is aimed at helping Germany strengthen the use of blue hydrogen and transition towards green hydrogen.