Two Green Hydrogen Projects Announced in Italy

Funded through the European Union’s post-pandemic recovery fund, four energy companies have announced two green hydrogen projects in Italy.

Following an agreement signed by Italian gas grid operator Snam, and utility Hera, the first green hydrogen site is set to be developed near Modena in the north.

A site near Rome has separately been selected for a green hydrogen production plant thanks to a partnership between the Italian unit of France’s Engie and gas distributor Società Gasdotti Italia (SGI), together with local industry lobby Consorzio Industriale Lazio.

The hydrogen produced will go to local public transport groups, with further potential to be available to energy-intensive companies based near Modena, such as tile-makers and automotive groups.

Hera Chief Executive Orazio Lacono commented: “Hydrogen is still expensive, but its price could halve to around 5 euros a kilo if the government offers incentives to reduce costs, in addition to existing ones on capex.”

The €20 million project involving Engie and SGI, which is led by Snam and Hera, has the capacity to make 400 tonnes a year of green fuel. €9.5 million will be coming from public funds.