EU Commission Approves €6 Billion Italian Renewable Hydrogen Support Scheme

The European Commission has approved Italy's €6 billion scheme to support renewable hydrogen production, aligning with EU Hydrogen Strategy and Clean Industrial Deal objectives.

The scheme aims to develop 200,000 tons of renewable hydrogen production annually. Eligible hydrogen includes that produced via electrolysis powered by renewable electricity and hydrogen from biogenic sources through biological, bio-thermochemical, and thermochemical processes.

Support will be provided through two-way contracts for difference, with strike prices determined via competitive bidding. If alternative fuel prices fall below the strike price, Italy will compensate producers. Conversely, if alternative fuel prices exceed the strike price, beneficiaries will reimburse the Italian state. The scheme runs until December 31, 2029.

The Commission assessed the measure under EU State aid rules and 2022 Guidelines on State aid for climate, environmental protection and energy. The Commission determined the aid necessary and proportionate for renewable hydrogen production, creates incentive effects for producers, and delivers environmental benefits through decarbonization of high-emission sectors that outweigh competitive impacts.

The approval follows Italy's notification of the scheme to the Commission under Article 107(3)(c) of the Treaty on the Functioning of the EU.

Originally reported by Hydrogen Central. Read the full article →