Italy’s Ministry of Environment and Energy Security (MASE) is implementing a new national support mechanism for renewable hydrogen and biohydrogen production, with annual spending capped at €400 million and incentives covering up to 200,000 tonnes of annual production capacity.
The measure is part of Italy and the European Union’s policies to achieve climate neutrality by 2050. It is aligned with the objectives of the European Green Deal, the Fit for 55 package, Italy’s National Integrated Energy and Climate Plan and the Italian Hydrogen Strategy.
Support for Italy’s hydrogen supply chain
The new incentive scheme is designed to promote the development of a domestic renewable hydrogen supply chain. It will support the production of green hydrogen through electrolysis, as well as biohydrogen produced from biomass, biogas or biomethane.
According to MASE, the mechanism aims to accelerate the decarbonisation of industry and transport, where hydrogen is considered one of the main solutions for reducing emissions in processes that are difficult to electrify.
Environment and Energy Security Minister Gilberto Pichetto said the measure is intended to provide Italy with a stable and competitive tool to support the growth of its renewable hydrogen supply chain.
The minister said the mechanism should create conditions for companies and investors to plan new industrial initiatives, while strengthening national energy security and the competitiveness of Italy’s productive system.
Pichetto also described hydrogen as a strategic lever for decarbonising industry and heavy-duty transport. He said the mechanism would support the most efficient investments, promote technological innovation and ensure that public resources are used according to effectiveness and sustainability criteria.
Competitive processes from 2026 to 2029
Access to the incentives will be granted through competitive public procedures, which will take place at least every six months between 2026 and 2029.
Projects will be ranked according to the discount they offer against the maximum auction price. The system will therefore favour projects able to guarantee hydrogen production at the lowest cost.
The mechanism combines financial support with a competitive allocation process, with the stated objective of directing incentives towards efficient production while supporting the development of Italy’s renewable hydrogen and biohydrogen sector.
