European Commission invests €320m in green hydrogen hub

Energy companies Edison and Saipem, alongside green investment manager Sosteneo SGR, have had their Puglia Green Hydrogen Valley project selected as part of the IPCEI Hy2Infra scheme. The funding programme announced earlier this month has awarded 33 green hydrogen infrastructure projects in seven EU countries.

The Italian project covers the construction of two electrolysers with a total capacity of 160 megawatts. The fuel will be used in a production process known as direct reduced iron (DRI) to decarbonize the steel-making process in Italy's largest steel plant in Taranto, and a consortium of other Italian steel mills.

End-users will have access to the green hydrogen produced at the valley through a hydrogen pipeline network to be constructed by Snam. The project, also awarded in the Hy2Infra scheme, will transport the fuel between Brindisi and Taranto. Operations are set to start in 2028.

“The IPCEI loan will represent the main driver for the development of the supply chain dedicated to the production of green hydrogen in Europe and will support Puglia Green Hydrogen Valley in the pursuit of decarbonisation projects,” said Federica Gallina, Sosteneo SGR’s partner and investment principal, Europe.

DRI D’Italia, a company owned by state investment agency Invitalia, will lead the potential application of hydrogen in the steelmaking process, in partnership with a consortium of steelmakers. The consortium has finalised a feasibility study for setting up hydrogen-based DRI plants to replace fossil fuels and decarbonise steel production in the country. The engineering and construction of these plants is slated for the first half of 2026, enabling the start of operations in the second half of 2026, according to DRI D’Italia.

Source: EUROMETAL