Hydrogen Technology Observatory: a hub for promoting expansion
Dec 11, 2024
Proactive
Italy is moving forward with determination in its commitment to renewable hydrogen, consolidating its position as a key country in the European energy transition thanks to this energy carrier. This momentum is largely due to significant investments and ambitious projects to be developed in the coming years.
The country has just presented its National Hydrogen Strategy, which considers short (2030), medium (2030-2040) and long term (2040-2050) time horizons, with several scenarios for the development of renewable and low-carbon hydrogen.
This strategy forecasts a national demand of between 6.39 and 11.93 million tonnes of oil equivalent (Mtoe) by 2050, while the forecasts of the Italian National Integrated Energy and Climate Plan (NIECP) point to a national production of between 4.47 Mtoe and 8.35 Mtoe.
Thanks to this energy carrier, Italy is consolidating its position as a key country in the European energy transition
Also by 2050, it is estimated that the penetration of hydrogen in Italy will reach up to 30% of final consumption in the transport sector and 18% of final energy consumption in the hard-to-abate (HtA) industry.
By 2030, in line with the NIECP, renewable hydrogen consumption is estimated at 0.25 million tonnes per year. At least 70% of this demand will be produced domestically (assuming 3 GW of electrolysis capacity), while the remaining 30% will be imported.
Italy’s National Strategy also provides estimates of the investments needed in the field of renewable hydrogen. Assuming a need for electrolysers of between 15 and 30 GW, the cumulative investment is estimated at 8-16 billion euros.
Italy’s National Strategy provides investment estimates for renewable hydrogen
Taking into account the contribution of other hydrogen production technologies (such as steam methane reforming), this could be as high as 13-24 billion euros, although economic and regulatory instruments are envisaged to reduce operating costs and facilitate production.
The strategy identifies a number of cross-cutting issues that need to be addressed for the development of the sector:
It also stresses the need to develop a transmission and distribution infrastructure linking the main production and consumption centres, highlighting the Southern Hydrogen Corridor.
The 3,300-kilometre pipeline, expected to be available in 2030, will create a strategic route linking North Africa with Italy, Austria and Germany, enabling the transmission of renewable hydrogen from the Mediterranean to the industries in northern Europe. Ports will be prepared for the import of hydrogen and other carriers such as ammonia and methanol.
The Italian government has funded more than 50 green hydrogen valley projects with 590 million euros from the National Recovery and Resilience Plan, which will be used to promote their production, distribution and use.
Hydrogen valleys are ecosystems structured to facilitate the production and consumption of sustainable hydrogen in a given environment, with the aim of integrating the value chain of this energy carrier beyond the industrial sphere.
They will have to be operational by 30 June 2026. Of all these projects, 28 will be located in the south of the country and will receive 50% of the total investment, according to the Italian Hydrogen Association (H2IT).