Policy Technology - 09/April/2021

Italy’s dreams of a green hydrogen future rest on its renewables plan

Italy is putting many eggs in the hydrogen basket to decarbonise its heavy industry, including its prized steel sector. Authorities dream of converted hydrogen steel plants and “hydrogen valleys” dotted across the country. But while attention is focussed on whether hydrogen can solve Italy’s problems, other key ingredients to make the hydrogen green are being ignored

A lack of progress in Italy’s renewables and grid capacity could derail its hydrogen plans

LOCATION LOCATION LOCATION Italy is well-placed geographically to become Europe’s central hub for the green hydrogen industry with excellent renewables resources in the country or nearby and easy links to northern Europe

COMPETITION CONCERNS European steel using green hydrogen needs to be able to compete with foreign imports, therefore electricity and carbon prices are key

KEY QUOTE If Italy does not resolve its permitting issues it will not reach its renewable energy targets in electricity, let alone build up a strong renewable hydrogen industry ...

 

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