In a significant push toward sustainable energy solutions, four prominent energy companies—Snam, Hera, Engie, and Società Gasdotti Italia—have jointly announced two groundbreaking green h2 projects in Italy. This strategic move not only aligns with their commitment to providing cleaner fuels but also leverages funding from the European Union’s post-pandemic recovery fund.
1. Snam and Hera’s Green Hydrogen Initiative Near Modena
Snam, the Italian gas grid operator, and utility Hera have formalized an agreement to establish a green hydrogen production site in the vicinity of Modena. This ambitious 20 million euro ($21.6 million) project, spearheaded by Snam and Hera, involves the creation of a photovoltaic plant. This plant will play a crucial role in supplying green energy to an electrolyser, which, at full capacity, is anticipated to produce 400 tonnes of green fuel annually.
While acknowledging the current expense of hydrogen production, Hera Chief Executive Orazio Iacono expressed optimism. He stated, “Hydrogen is still expensive, but its price could halve to around 5 euros a kilo if the government offers incentives to reduce costs, in addition to existing ones on capex.” The green fuel produced is earmarked for local public transport groups and could potentially be extended to energy-intensive companies in the Modena region.
As part of Snam’s broader business plan through 2026, the company has allocated 1 billion euros for investments in decarbonization. This encompasses not only the Modena project but also the development of a pipeline known as the SoutH2 Corridor, designed to transport hydrogen from North Africa to northern Europe.
Piero Ercoli, Executive Director of Snam Decarbonisation Unit, revealed the group’s upcoming market test for cross-border hydrogen infrastructure, signaling their commitment to advancing sustainable practices.
2. Engie, SGI, and Consorzio Industriale Lazio’s Hydrogen Venture Near Rome
In a parallel endeavor, the Italian unit of France’s Engie, along with gas distributor Società Gasdotti Italia and local industry lobby Consorzio Industriale Lazio, announced plans to produce green fuel near Rome. This collaborative project, expected to kick off production in 2026, aims for a remarkable capacity of 400 million tonnes of hydrogen per year.
The overall investment for this venture is estimated at 20 million euros, with 9.5 million euros secured from public funds. The project mirrors the collective commitment of these companies to accelerate the production of green hydrogen and contribute to Italy’s decarbonization goals.
In conclusion, these groundbreaking initiatives signify a significant step forward in the transition to sustainable energy sources. By capitalizing on EU recovery funds, these energy giants are not only pushing the boundaries of hydrogen production but also actively contributing to the global movement toward cleaner and greener practices.
