EU Commission approves €550m Italian aid scheme for hydrogen investments

The European Commission has approved under the State aid Temporary Crisis and Transition Framework a €550m Italian scheme to support investments for the use of renewable hydrogen in industrial processes, to promote the transition towards a net-zero economy in line with the Green Deal Industrial Plan.

Italy notified the Commission of a €550m scheme to enable the substitution of methane and other fossil fuels with renewable hydrogen that can be combined with significant energy efficiency improvements in industrial processes and electrification. The scheme, funded through resources allocated to the Italian National Recovery and Resilience Plan (PNRR), will take the form of direct grants. It is open to companies that rely on fossil fuels as energy source or feedstock for their production processes in Italy’s industrial sectors. Eligible projects must seek to reduce greenhouse gas (GHG) emissions from production processes by at least 40% or to reduce energy consumption by at least 20%. In 2021, Italy’s industrial emissions from industrial processes were close to 16 MtCO₂ (stable since 2015).  

The European Commission adopted the Temporary Crisis and Transition Framework on March 2023 to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Green Deal Industrial Plan. Introduced in February 2023, the Green Deal Industrial Plan is a key initiative of the European Green Deal and aims to enhance the EU's manufacturing capacity for net-zero technologies, fostering sustainability and economic growth while reducing GHG emissions.