Italy announces nearly €1bn in subsidies toward EU-approved hydrogen projects

The Italian government announced that it will provide over €994 million in subsidies for hydrogen projects that are part of the EU’s Hy2Infra Important Projects of Common European Interest (IPCEI) list. Earlier this year, the European Commission said that up to 600MW of electrolysis capacity and hydrogen pipelines in Italy could receive significant state aid through Hy2Infra, which allowed €6.9 billion of government spending across seven European countries.

While the specific Italian companies included in the IPCEI wave were not named, some have already announced their involvement. In February, the developers of the Puglia Green Hydrogen Valley said they would receive €470 million in public funds. This project will include 160MW of electrolyser capacity in Brindisi and Taranto, developed by the energy firm Edison and engineering company Saipem, as well as 110 km of pipelines, 85 km of which will be repurposed gas infrastructure, developed by the gas transmission operator Snam. The operations are set to begin in 2028.

Another local developer, Energie Salentine, was also notified as part of Hy2Infra, but the specific project details are unknown.

The Italian government confirmed that the state aid will be given as grants to cover eligible investments. Adolfo Urso, the Italian minister of enterprise and “Made in Italy,” said that Italy is leading in the hydrogen challenge with nearly a billion euros for the Italian hydrogen supply chain, marking an important step towards technological neutrality with strategic projects in green technology.