European Commission approves €450 million Italian scheme to support the production of renewable hydrogen to foster the transition to a net-zero economy.
The European Commission has approved a €450 million Italian renewable hydrogen production scheme to support the transition to a climate-neutral economy, in line with the Green Deal industrial plan.
The scheme was approved on the basis of the Temporary Framework on crisis management and transition management, adopted by the Commission on 9 March 2023 , to support action in areas critical to accelerating the green transition and reducing fuel dependency meaning are. The new framework became the one adopted on March 23, 2022 and July 20, 2022and Temporary Crisis Frameworks amended on 28 October 2022 again amended and partially extended to allow Member States to support the economy in the current geopolitical crisis.
The Italian measure
Italy has notified a €450 million scheme to the Commission under the Temporary Framework for Response to the Crisis and Management of Transition to support investment in integrated renewable hydrogen and renewable electricity production in brownfield sites to facilitate the transition to support a climate-neutral economy.
The action, funded under the Recovery and Resilience Facility, is open to companies of any size operating in Italy, excluding credit institutions and other financial institutions. Under the scheme, projects are selected on the basis of an open call for tenders.
Public support will be in the form of direct grants to cover investment costs, with a maximum grant of EUR 20 million per project.
The Commission has found that the scheme notified by Italy fulfills the conditions set out in the Temporary Framework for crisis management and transition management. In particular: (i) the aid will be granted on the basis of an aid scheme with an estimated budget; (ii) the amount of the aid will be determined through an open, clear, transparent and non-discriminatory tender; and (iii) the aid will be granted no later than 31 December 2025 .
The Commission has concluded that the Italian regime is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic sectors essential for the implementation of the REPower EU plan and theIndustrial Plan are relevant to the Green Deal and is therefore in line with Article 107(3)(c) TFEU and the conditions set out in the Temporary Framework for crisis management and transition management.
Consequently, the Commission has approved the measure under EU state aid rules.
State aid: Commission approves €450 million Italian renewable hydrogen production scheme to support the transition to a climate-neutral economy,
