National strategy for hydrogen: Italy as an energy hub of the Mediterranean

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Emma Potter

The national plan for decarbonisation

The plan that Italy intends to adopt for decarbonization of consumption envisages a mix of tools, including a progressive electrification of energy consumption combined withincrease in production from renewable sourcesit development of CCS (Carbon Capture and Storage)of the biofueldel biomethaneof the possible nuclear source and last but not least, thehydrogen (renewable and low carbon emission).

Hydrogen is called upon to play a fundamental role in specific mobility sectors, such as heavy or long-range land transport, the maritime sector (also through derivatives such as ammonia), and air transport, thanks to synthetic fuels. Furthermore, it can be decisive in sectors hard-to-abate industry (steel, foundries, ceramics, glass cement).

National Hydrogen Valleys operational by 2026

Italy is therefore focusing on hydrogen produced from renewable sources and in particular that obtained with the electrolysis of water powered by solar or wind energycompared to“grey” hydrogen (from fossil sources) o “blue” obtained from natural gas with carbon capture and storage. However, electrolytic renewable hydrogen currently suffers from low technological maturity, economies of scale still to be achieved, as well as on average high electricity prices.

However, according to the government, it continues reduction of technology costs (renewables supply chain, electrolysers supply chain), as well as theincrease in efficiency of electrolysersshould progressively lead to more competitive final costs of electrolytic hydrogen powered by RES. For this reason, a process has already been undertaken finance through PNNR funds the development of production and consumption ecosystems concentrated in confined areas (so-called Hydrogen Valleys)capable of creating synergies between different sectors, from mobility to industry.

This phase will give the possibility of using renewable and low carbon emission hydrogen, both in the mobility and industrial sectors, in order to immediately have the first significant quantities of hydrogen equipped with specific guarantees of origin. The evolution of the production sector will also be accompanied by the local development of transport and logistics infrastructures.

Scalability and market development in the medium term

The second phase (2030-2040) of the Strategy will be characterized by a set of measures designed to start a real hydrogen marketalso through the development of large-scale solutions capable of reducing operating costs. For this reason, the aim is to support all those applications that are already in the validation phase such as the applications of electrolysers for grid balancing, power-to-gas,entry of H2 in the gas network and the accumulation on a daily and seasonal basis (in particular, geological) of the surplus of renewable energy.

Equally important are the technologies relating to infrastructures intended for the transport, regasification and cracking of hydrogen derivatives. Other important fields of validation concern the use of fuel cells in cogeneration systems, and the production of hydrogen also from the gasification of biomass and municipal solid waste.

Italy’s hydrogen hub

According to the Strategy, the infrastructure for the production and distribution of hydrogen will play a central role in supporting the expansion of consumption, in consideration of the development of supply, and at the same time guaranteeing competitive supply. For this reason the project is important “Southern Hydrogen Corridor”of which the Italian backbone is an integral part, which will make Italy a European hydrogen hubfavoring import flows from North Africa via pipeline and from other areas also by ship.

This project foresees approx 2,300 km of main backboneas well as 530 km of connecting sections, from Mazara del Vallo to Tarvisio and Passo Gries. The development of the infrastructure can be strategically managed in a “modular” way, first starting the development of the sections where there is already a significant demand for renewable hydrogen and proceeding in successive phases with the connection of all the nodes, with the progressive integration of the various production centers.

Centralization, large quantities, infrastructures for the turning point of 2050

The infrastructure will be a protagonist for the exchange of energy with other countries, consolidating Italy’s role as a hydrogen import hub for the European context with gas network infrastructures connected to North Africa and a set of ports (both on the Tyrrhenian and on the Adriatic), authorized for the import of hydrogen and other energy carriers (for example ammonia, methanol).

2050 will represent the arrival point of the Net Zero commitmentswith a hydrogen penetration that could potentially reach around 18% of the final consumption of the hard-to-abate industry and of 30% of final consumption in the transport sector. In this last phase, hydrogen will also be able to take on a role in other previously less considered contexts, such as in grid balancing and long-term storage.