The European Commission has approved a €450 million Italian scheme to support the production of renewable hydrogen with the aim to foster the transition to a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.

According to the Commission, the new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.

Italy notified to the Commission, under the Temporary Crisis and Transition Framework, a €450 million scheme to support investments in the integrated production of renewable hydrogen and renewable electricity in brownfield industrial areas to foster the transition to a net-zero economy.

The measure, financed under the Recovery and Resilience Facility ('RRF'), will be open to companies of all sizes active in Italy with the exception of credit and other financial institutions. Under the scheme, the projects will be selected through an open competitive bidding process.

The public support will take the form of direct grants covering investment costs, with a maximum amount of aid per project of €20 million.

The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. The Commission concluded that the Italian scheme is "necessary, appropriate and proportionate" to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the REPower EU Plan and the Green Deal Industrial Plan.

On this basis, the Commission approved the aid measure under EU State aid rules.rules.

"This €450 million scheme will allow Italy to accelerate the deployment of renewable hydrogen capacities, in line with the EU Hydrogen Strategy. The measure will also help Italy reduce its dependence on imported fossil fuels, in line with the REPowerEU Plan, while ensuring that any potential competition distortions are kept to the minimum" said Margrethe Vestager, Executive Vice-President in charge of competition policy.