Italy

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GH2 Country Portal – Italy

Green Hydrogen Vision

Italy’s green hydrogen vision is centred on leveraging its unique geographical advantages, industrial capabilities, and commitment to a sustainable energy future. As part of its broader decarbonisation goals, Italy views green hydrogen as a cornerstone for transforming energy-intensive industries, such as steelmaking and chemicals, while supporting clean mobility and energy storage solutions. By tapping into its abundant solar and wind energy resources, particularly in southern and offshore regions, Italy aims to produce renewable hydrogen that can replace fossil fuels in sectors where electrification alone cannot achieve desired emissions reductions. The country envisions creating a robust hydrogen economy that includes production hubs, dedicated infrastructure for storage and transportation, and integration into domestic and cross-border energy markets. Italy also sees hydrogen to enhance its energy security, reducing reliance on imported fossil fuels and diversifying its energy portfolio. Collaboration is key to this vision, with Italy fostering partnerships within Europe and the Mediterranean region to build hydrogen corridors and facilitate knowledge exchange. Through targeted policies, incentives, and investment in innovation, Italy is positioning itself as a leader in the transition to a sustainable hydrogen-powered economy, driving economic growth and reinforcing its role in global climate action. 

National Strategy

Italy’s 2020 National Hydrogen Strategy outlines a comprehensive plan to leverage hydrogen as a key enabler of decarbonisation and energy security, aligned with the European Green Deal and long-term climate goals. The strategy focuses on integrating hydrogen across critical sectors, such as transport, industry, and energy storage, where direct electrification is less feasible. By emphasising short-term projects, such as blending hydrogen into existing gas grids and introducing hydrogen-powered heavy-duty vehicles, and long-term initiatives like full-scale industrial decarbonisation, the strategy aims to position Italy as a leader in the European hydrogen economy. 

The document highlights the potential of hydrogen to reshape Italy’s energy landscape by utilising renewable energy sources for green hydrogen production through electrolysis. Investments are targeted at creating hydrogen valleys—integrated ecosystems of production and consumption—to drive innovation and collaboration in industrial and transport applications. The strategy also envisions significant advancements in infrastructure, including the adaptation of existing gas pipelines and the development of refuelling stations to support the growing use of hydrogen in mobility and industrial sectors. 

The transition will require substantial public and private investments supported by EU funds and national resources. These efforts are expected to create thousands of jobs and stimulate economic growth while significantly reducing greenhouse gas emissions. The strategy underscores the importance of research, development, and international partnerships to advance hydrogen technologies and foster competitiveness in global markets. This multi-pronged approach ensures Italy’s progress toward achieving its climate targets and establishing a sustainable hydrogen economy. 

Capacity Targets

Hydrogen Production: 

  • Target of 5 GW of electrolyser capacity by 2030. 
  • Hydrogen is expected to penetrate 2% of the final energy demand by 2030, with a potential for up to 20% by 2050. 

Sectoral Applications: 

  • Focus on industrial decarbonisation (chemical production, refining, and primary steel). 
  • Adoption of hydrogen in mobility sectors (long-haul trucks, trains, and public transport). 
  • Hydrogen blending in the gas network (target: ~2% by 2030). 

Infrastructure Development: 

  • Establish hydrogen valleys where production and consumption coexist. 
  • Leverage existing gas infrastructure for hydrogen distribution and storage. 

Impact Targets

Decarbonisation Goals: 

  • Hydrogen adoption to contribute to a reduction of 8 million tonnes of CO2 equivalent by 2030, accounting for 4% of the decarbonisation targets under Italy’s National Energy and Climate Plan (PNIEC). 
  • The long-term vision includes carbon neutrality by 2050. 

Economic and Employment Impacts: 

  • Create over 200,000 temporary jobs during construction and 10,000 permanent jobs by 2030. 
  • Expected GDP contribution of up to €27 billion by 2030. 

Energy System Integration: 

  • Utilise excess renewable energy for hydrogen production, integrating the electricity and gas-hydrogen systems to enhance energy flexibility and reduce renewable energy curtailment. 

Policy and Project Spotlight

  1. Axpo has officially announced its participation in a major green hydrogen initiative in Italy's Abruzzo region. By utilising existing industrial resources in Corfinio, Axpo is collaborating with Infinite Green Energy (IGE), the project initiator, to produce up to 12 tonnes of hydrogen daily. This effort aims to decarbonize operations within challenging sectors such as industry and transportation. The planned facility will feature a 30MW electrolyser powered by a 45MWp solar plant, positioning it among the largest hydrogen plants in the country. Furthermore, Axpo and the Australian renewable hydrogen firm Infinite Green Energy have entered into a Joint Development Agreement (JDA) regarding the Valle Peligna Hydrogen Project in Abruzzo. This agreement details their strategic alliance, the advanced design, and the financial investment in the facility, which will play a vital role in decarbonising industries within the Corfinio area. As one of Italy's largest commercial-scale green hydrogen plants, it will provide green hydrogen to the industrial and transportation sectors, alongside delivering renewable electricity to the local grid, expected by the second half of 2025. 
  2. An agreement between Snam, Italy's gas grid operator, and Hera has initiated the construction of the first green hydrogen site near Modena in northern Italy. Moreover, another facility for green hydrogen production has been planned in the vicinity of Rome, resulting from a partnership involving the Italian division of France’s Engie, gas distributor Società Gasdotti Italia (SGI), and the local industrial organization Consorzio Industriale Lazio. The hydrogen produced will serve local public transport and may also benefit energy-intensive industries in the Modena region, such as tile manufacturing and automotive businesses. Hera's CEO, Orazio Lacono, commented that though hydrogen production remains expensive, government incentives aimed at cost reduction could lower its price to about 5 euros per kilo, in addition to the existing capital expenditure support. Valued at €20 million, the project, which includes collaboration from Engie and SGI with leadership from Snam and Hera, is projected to generate 400 tonnes of green fuel each year. Public funding will contribute €9.5 million toward this initiative. 

Financing

Investment Requirements: Total investment of €10 billion for hydrogen development between 2020 and 2030.  

  • €5-7 billion for hydrogen production. 
  • €2-3 billion for infrastructure (e.g., fuel cell vehicles, refuelling stations). 
  • €1 billion for research and development. 

Public and Private Contributions: 

  • Half the investments will be funded through dedicated resources, including EU mechanisms (Next Generation EU, Horizon Europe, Innovation Fund). 
  • National programs such as the Fondo Crescita Sostenibile and Fondo CleanTech support local projects. 

Policy and Research Support: 

  • Develop regulatory frameworks and safety standards for hydrogen. 
  • Invest in the growth of local industries, particularly in electrolyser production and fuel cell technologies, to foster a competitive domestic ecosystem. 

Government Green Hydrogen Lead

Ministry of Environment and Energy Security

Ministry of Economic Development