Italy's Ambitious Hydrogen Strategy for 2050
Key Ideas
- Italy plans for hydrogen to meet 18% of hard-to-abate consumption and 30% of transport demand by 2050, requiring substantial additional power capacity.
- The strategy outlines a three-phase rollout with a focus on industrial and transport sectors, aiming to install 3 GW of electrolysers by 2030 to meet national climate targets.
- The government allocated EUR 6bn in funding, but further support mechanisms are needed to develop a viable hydrogen market with production costs projected at EUR 6-8/kg for green hydrogen by 2030.
- European renewable hydrogen costs in 2023 ranged from EUR 4.06-17.36/kg, showcasing a need for price reduction to EUR 2-2.5/kg for solid demand in the energy system.
Italy revealed a new hydrogen strategy targeting 18% of hard-to-abate consumption and 30% of transport demand by 2050, requiring '10s of gigawatts' of additional power capacity. The plan, unveiled in Rome, estimated a national hydrogen demand between 2.1-4.2m tonnes by 2050, marking Italy's first hydrogen target for industry. The strategy features three development phases, emphasizing industrial and transport sectors initially, leading to large-scale deployment to reduce operating costs and centralised infrastructure development. Italy aims to install 3 GW of electrolysers by 2030 to meet its national climate targets. The strategy includes nuclear as a potential production source for hydrogen and calls for significant investment. Despite an initial allocation of EUR 6bn in funding, further support mechanisms are deemed necessary. Production costs by 2030 are projected at EUR 6-8/kg for green hydrogen and EUR 2.5-3.5/kg for blue hydrogen. European renewable hydrogen costs in 2023 varied from EUR 4.06-17.36/kg, highlighting the need for price reduction to boost demand. Minister Gilberto Pichetto Fratin emphasized that hydrogen prices would influence its integration into Italy's energy system.