Italy Wins Electrolyser Funding from European Commission

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Italy has won a 100 million-euro (US$105 million) funding boost from the European Commission (EC) to help support electrolyser production in the country.

The EC grant, made under the Temporary Crisis and Transition Framework (TCTF), is designed to help Italy avoid a massive shortfall in the homegrown production of clean hydrogen in the coming years. The purpose of the scheme is to build up capacities for the production of strategic equipment--in this case electrolysers--necessary for Italy's switch to cleaner energy sources. The government wants to build a plant capable of turning out up to 1-gigawatt (GW) of electrolyser capacity per year, but there are no concrete details yet on location, investment or potential partners.

"The Italian scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the REPower EU Plan and the Green Deal Industrial Plan," the EC stated. Italy's stated goals from 2020 are among the most ambitious with the aim of creating about 5 gigawatts (GW) of electrolyzing capacity over the 2021-2030 period. It is aiming at 2% hydrogen penetration into final energy demand by 2030, and up to 20% by 2050.

Industrial Info is tracking more than 50 hydrogen-related projects in Italy in the Chemicals, Refining, Metals & Minerals and Alternative Fuel sectors with a combined investment value of almost US$7 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. One of the largest projects, involving a number of energy companies and Italian gas grid operator Snam (San Donato Milanese, Italy), is a proposed green hydrogen plant in Taranto with a 100-megawatt electrolyser capacity capable of producing more than 40 tonnes of hydrogen per day.

The Ministry of Economic Development said it will need investment of around 10 billion euros (US$12 billion) by 2030 to make this possible, with half of the amount coming from European funds and private investments. Breaking that down, Italy expects to invest up to 3 billion euro (US$3.15 billion) in distribution infrastructure, train and tracks; between 5 billion and 8 billion euro (US$5.25-8.4 billion) in hydrogen production and 1 billion euro (US$1.05 billion) research and development. Supporting Italy's ambitions will help the European Union (EU) reach its goal to install at least 6 GW of renewable hydrogen-based electrolysers and the production of up to 1 million tonnes of renewable hydrogen by 2024. By 2023, the EU wants to have at least 40 GW with a production target of up to 10 million tonnes of domestic renewable hydrogen in the region.

Earlier this year, the EC approved the Italian government's plan to spend 450 million euro (US$475 million) in direct grants to a large number of green hydrogen projects, many in the south of the country where the rollout of renewable energy is strong. Italy, along with Germany and Austria, is also promoting the "Southern Hydrogen Corridor" (SoutH2) through their national gas infrastructure companies. It is a 3,300-kilometer (km) network of pipelines that would form a hydrogen corridor with North Africa. Comprising more than 70% of repurposed gas infrastructure, with new segments to be added, it would have a hydrogen import capacity of more than 4 million tonnes per annum (mtpa) from North Africa--40% of the EU's import target.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).