The European Commission has approved a EUR6bn (USD6.9bn) Italian scheme to support the production of 200 kt/year of renewable hydrogen for the transport and industrial sectors, in line with the objectives of the EU Hydrogen Strategy and the Clean Industrial Deal (European Commission, 30/03/2026). Both hydrogen produced via electrolysis powered by electricity from renewable energy sources and hydrogen produced from biogenic sources is eligible under the measure.
The aid will take the form of two-way contracts for difference (CfDs), under which 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 alternative fuel exceeds the strike price, the beneficiaries will pay the difference to the Italian state.
The scheme will run until 31 December 2029.
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