European Commission Approves €450 Million Italian Scheme for Renewable Hydrogen Production

The European Commission has approved a €450 million Italian scheme to support the production of renewable hydrogen with the aim of fostering the transition to a net-zero economy, in line with the Green Deal Industrial Plan. The scheme is part of the Temporary Crisis and Transition Framework, adopted by the Commission on March 9, 2023, to support measures in sectors key to accelerating the green transition and reducing fuel dependencies.

The Italian measure will be open to companies of all sizes active in Italy, with the exception of credit and other financial institutions. The public support will take the form of direct grants covering investment costs, with a maximum amount of aid per project of €20 million. The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework, which includes ensuring that the aid is granted before December 31, 2025.

The Temporary Crisis and Transition Framework allows Member States to provide support to companies affected by the current crisis, including through State guarantees and subsidised loans. It also enables the use of aid to compensate for high energy prices and measures aimed at supporting electricity demand reduction. Additionally, Member States may design schemes to support the manufacturing of strategic equipment and production of key components and materials for the transition towards a net-zero economy.

Key Takeaways:

• The European Commission has approved a €450 million Italian scheme to support the production of renewable hydrogen, aligning with the Green Deal Industrial Plan.
• The scheme will be open to companies of all sizes, with the exception of credit and other financial institutions, and will provide direct grants covering investment costs up to €20 million per project.
• The Commission found that the Italian scheme meets the conditions set out in the Temporary Crisis and Transition Framework, including ensuring aid is granted before December 31, 2025.
• The Temporary Crisis and Transition Framework enables Member States to provide emergency support to companies affected by the current crisis, including State guarantees and subsidies.
• Member States may design schemes to support the manufacturing of strategic equipment, production of key components and materials, and measures to accelerate the rollout of renewable energy and energy storage.

Statistics:

• €450 million: the amount of funding approved by the European Commission for the Italian scheme.
• €20 million: the maximum amount of aid per project.
• €31 December 2025: the deadline for the Temporary Crisis and Transition Framework's key measures to accelerate the green transition.
• €250,000: the maximum aid amount for companies affected by the crisis in the agriculture sector.
• €300,000: the maximum aid amount for companies affected by the crisis in the fisheries and aquaculture sectors.

Sources:

• European Commission, "European Commission Approves €450 Million Italian Scheme for Renewable Hydrogen Production," IP/23/2044, April 4.
• European Commission, "Temporary Crisis and Transition Framework," adopted on March 9, 2023.
• European Commission, "Green Deal Industrial Plan," COM(2021) 700 final, October 22, 2021.
• European Commission, "REPowerEU Plan," COM(2022) 600 final, July 18, 2022.