The European Commission has approved Italy’s €450mn ($490mn) support scheme for renewable hydrogen projects under its Temporary Crisis and Transition Framework.

Italy will provide grants of up to €20mn to cover investment costs for integrated renewables and hydrogen production plants on brownfield sites, with a focus on former industrial areas in the south of the country.

Projects will be selected via a competitive bidding process, with credit and financial institutions ineligible to receive grants. The Ministry of the Environment and Energy Security plans to award first contracts early this year, and the Commission notes that state aid must be allocated before 2025 to qualify under the framework.

22 – Italian green hydrogen projects under development

Italy has 22 green hydrogen projects in the pipeline, with announced capacity exceeding 1.1GW, according to Global Energy Infrastructure data. The largest project announced to date is the 1GW Hymed floating offshore wind-to-hydrogen project by developers Aquaterra Energy and Seawind.

‘Hydrogen valleys’ are also planned for Rome and Puglia. The former, a waste-to-hydrogen plant developed by Maire Tecnimont and its subsidiary Nextchem, received a €194mn grant via the EU’s Hy2use Important Projects of Common European Interest (IPCEI) scheme and is due to complete Feed this year. The 220MW Puglia valley, developed by Saipem and Alboran Hydrogen, includes three projects in Brindisi, Cerignola and Taranto. The 60MW Brindisi plant is in an advanced stage of development, according to the developers, which have applied for IPCEI status for the valley.

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Author: Polly Martin