AN UPDATE ON ITALY'S HYDROGEN STRATEGY
The EU Commission's priority is to develop clean and renewable hydrogen, produced primarily using renewable energy. This option is compatible with the EU's long-term climate-neutrality objective, as well as being the most consistent with an integrated energy system.
Green hydrogen is emerging as a cornerstone of the global energy transition. Produced through electrolysis powered by renewable sources, it represents a versatile, storable, and transportable energy carrier, capable of decarbonizing industrial sectors that are difficult to electrify, such as steel, chemicals, and heavy-duty transportation.
For Italy, this source represents not only an opportunity to reduce emissions, but also an opportunity for industrial and technological development, positioning the country as a European hub for production, distribution, and innovation in the clean energy sector.
Italy’s plan for green hydrogen focuses on installing 5 GW of electrolysis capacity by 2030, aiming for a 20% hydrogen penetration in final energy demand by 2050. Supported by the National Recovery and Resilience Plan (NRRP), the strategy targets industrial decarbonization (steel, chemicals) and transport, leveraging Mediterranean solar/wind for production.
Key Aspects of Italy's Green Hydrogen Strategy:
- Capacity & Targets: The national strategy aims for 5 GW of electrolyzers by 2030, reducing CO2 emissions by 8 million tons annually.
- Key Projects & Infrastructure: Hydrogen Valleys: Development of regional hubs, such as the Puglia Green Hydrogen Valley (160 MW). Infrastructure: Utilizing existing gas networks for transport and storage, with initiatives like Italgas activating Italy's first plant for direct city network injection in Sardinia. Transport: Focus on blending hydrogen into existing natural gas networks.
- Strategic Focus: The strategy prioritizes replacing grey hydrogen in "hard-to-abate" industrial sectors (refineries, steel) and developing Mediterranean, and potentially African, import corridors.
As of 2025-2026, the focus has shifted toward finalizing operational rules for hydrogen, particularly regarding the tariff decree to ensure market competitiveness against fossil fuels.
[Source: https://gh2.org/countries/italy - https://opportunitaly.gov.it/it/news-and-media/green-hydrogen-italy-leads-energy-transition]
*** The point from the 2025 Observatory by Intesa Sanpaolo and H2IT ***
Hydrogen Supply Chain: 85% of Companies Set to Accelerate Investments by 2026
The Italian hydrogen supply chain continues to expand. The sector is no longer defined solely by experimentation but is moving toward progressive industrial consolidation.
According to the 2025 Hydrogen Observatory in Italy, developed by Intesa Sanpaolo’s Research Department in collaboration with Intesa Sanpaolo Innovation Center and H2IT, the Italian hydrogen ecosystem shows tangible signs of growth and increasing maturity.
“The Italian hydrogen supply chain is more structured compared to 2023: two-thirds of manufacturing companies are already generating revenues from the sector. Despite high costs and ongoing uncertainty, companies continue to invest and expect further increases in financial commitments by 2026, with a strong focus on technological innovation and the development of more industrially mature solutions” [Gregorio De Felice, Chief Economist at Intesa Sanpaolo]
Key figures: investments and revenues
The main findings emerged from a survey conducted among 79 companies operating along the value chain:
- Growing role of hydrogen in business activities: 58% of companies already generate revenues from hydrogen-related activities, rising to 66% among manufacturing firms.
- International outlook: 46% of hydrogen-related revenues come from foreign customers, confirming strong positioning in international markets.
- Rising investments: 85% of companies in the supply chain expect to increase investments in the sector by 2026.
- Revenue growth expectations: More than 90% of companies anticipate higher revenues by 2026.
- Robust project pipeline: Over 70% of companies have projects at an advanced stage, and 25% of these already have initiatives under construction.
Innovation and skills: the driving force of the ecosystem
Technology represents the core engine of this ecosystem. Most companies have already integrated advanced solutions and are heavily investing in human capital:
- Research and Development: 70% of companies have an internal R&D department, with widespread adoption of Industry 4.0 technologies.
- Patents: Nearly one-third of companies have filed or are about to file patents.
- Training: 65% of organizations invest in hydrogen-focused training programs.
Towards 2030: key challenges ahead
While the supply side is solid and technologically advanced, the main challenge for the coming years will be stimulating market demand and defining an even clearer regulatory framework. Most entrepreneurs are confident about achieving the targets set by the National Energy and Climate Plan (PNIEC) for 2030, provided that adequate policy measures are implemented.
[Source: https://group.intesasanpaolo.com/en/newsroom/all-news/news/2026/intesa-sanpaolo-hydrogen-report-2025]