On Monday 30 March, the European Commission approved, under European State aid rules, an Italian public scheme worth €6 billion to support the production of renewable hydrogen for the transport and industrial sectors, in line with the objectives of the EU Hydrogen Strategy and the Clean Industrial Deal (see EUROPE 13588/1).
In force until the end of 2029, the Italian measure aims to support the production of 200,000 tonnes of renewable hydrogen per year. Hydrogen produced by electrolysis using electricity from renewable energy sources and hydrogen produced from biogenic sources using biological, biothermochemical and thermochemical processes are eligible.
The aid, granted to companies selected following a competitive bidding process, will take the form of two-way contracts for difference (CfDs). If the price of an alternative fuel used by hydrogen consumers falls below the fixed strike price, Italy will pay the difference to hydrogen producers. If the price of the counterfactual fuel exceeds the strike price, the beneficiaries will pay the difference to the Italian state. (Original version in French by Mathieu Bion)