The European Commission has approved, under EU State aid rules, a €6 billion Italian scheme to support the production of renewable hydrogen for the transport and industrial sectors. The scheme will contribute to the development of renewable hydrogen production capacity in line with the objectives of the EU Hydrogen Strategy and the Clean Industrial Deal.
Italy notified to the Commission a scheme to support the production of 200 000 tpy of renewable hydrogen. Both hydrogen produced via electrolysis powered by electricity from renewable energy sources and hydrogen produced from biogenic sources through biological, bio-thermochemical and thermochemical processes is eligible under the measure.
The aid will take the form of two-way contracts for difference. Under these contracts, a strike price for hydrogen will be determined through a competitive bidding process. If the price of an alternative fuel that would be used by the hydrogen consumers falls below that strike price, Italy will pay hydrogen producers the difference. If the price of the counterfactual fuel exceeds the strike price, the beneficiaries will pay the difference to the Italian state.
The scheme will run until 31 December 2029.
