European Commission Approves Italy's €6 Billion Green Hydrogen Production Subsidy Scheme

The European Commission has approved Italy's €6 billion ($6.9 billion) green hydrogen subsidy scheme aimed at supporting domestic production for transport and industrial sectors while meeting renewable energy directive (RED) III requirements.

The program will support production of approximately 200,000 tonnes of green hydrogen annually through two-way contracts for difference. Under this mechanism, producers will participate in competitive bidding to receive a strike price—the difference between production costs and consumer prices.

If hydrogen prices exceed the negotiated strike price, producers will reimburse the state for the difference, creating a cost-sharing arrangement. Conversely, if prices fall below the strike price, the state will cover the gap to support production viability.

The European Commission did not confirm whether the full €6 billion budget will be needed to achieve the 200,000-tonne annual target, noting that actual funding requirements will depend on auction results and market conditions.

Originally reported by Hydrogen Europe. Read the full article →