EC clears EUR-550m support scheme for renewable hydrogen in Italy

Italy has received the approval of the European Commission (EC) with regard to a EUR-550-million (USD 595.3m) state aid programme focusing on the decarbonisation of industrial processes through the use of renewable hydrogen.

The scheme will support companies looking to invest in substituting methane and other fossil fuels with renewable hydrogen. They will receive direct grants that are funded through resources allocated to the Italian National Recovery and Resilience Plan (PNRR). To be eligible for state aid, the projects must lead to a reduction of greenhouse gas emissions from production processes by at least 40% or to cut energy consumption by at least 20% from current levels.

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The Commission has determined that the scheme aligns with the conditions set out in the Temporary Crisis and Transition Framework, under which it was filed for approval. More specifically, the aid will not exceed EUR 200 million per beneficiary and will be granted no later than December 31, 2025. In addition, it will be subject to conditions aimed at ensuring actual emissions savings and a switch to hydrogen use.

The EC’s conclusion is that the state aid “is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities.”

(EUR 1.0 = USD 1.082)