- The scheme includes €450 million in direct grants for renewable hydrogen and electricity production.
- Projects will be selected through an open competitive bidding process.
- The aid will be granted before 31 December 2025.
- The measure is financed under the Recovery and Resilience Facility and excludes financial institutions.
Overview
The European Commission has approved a €450 million Italian scheme to support the production of renewable hydrogen and electricity in brownfield industrial areas. This initiative aims to accelerate the transition to a net-zero economy and reduce fuel dependencies.
Funding and Eligibility
Financed under the Recovery and Resilience Facility (RRF), the scheme is open to companies of all sizes operating in Italy, excluding credit and financial institutions. The projects will be selected through an open competitive bidding process, with a maximum aid amount of €20 million per project.
Compliance and Timeline
The Commission found the Italian scheme compliant with the Temporary Crisis and Transition Framework conditions. The aid will be granted based on a transparent, non-discriminatory process and must be allocated before 31 December 2025. The scheme aligns with the REPower EU Plan and the Green Deal Industrial Plan, supporting the green transition and economic development.
Background
The Temporary Crisis and Transition Framework, adopted on 9 March 2023, aims to support sectors crucial for achieving a net-zero economy. It amends the Temporary Crisis Framework, initially adopted in response to the geopolitical crisis and amended multiple times to address energy price hikes and supply issues. The framework allows Member States to provide various forms of aid, including grants, loans, and guarantees, to support renewable energy, decarbonize industrial processes, and reduce energy demand.
Future Provisions
Measures to accelerate the green transition and reduce fuel dependencies will remain in place until 31 December 2025. Other provisions, such as liquidity support and aid for high energy prices, will be applicable until 31 December 2023, with potential extensions assessed later.
