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Comment Sustainability

Italian consortium to jointly develop Puglia Green Hydrogen Project

By Mary Page Bailey |

Edison S.p.A. and Snam S.p.A. (both Milan, Italy) have signed a Memorandum of Understanding (MoU) along with Saipem S.p.A. (San Donato Milanese, Italy) and Alboran Hydrogen – who had both already signed a cooperation agreement last year – for the joint development of the Puglia Green Hydrogen Valley project, one of the first large-scale initiatives for the production and transport of green hydrogen in Italy.

The aim of this project is to help accelerate the uptake of green hydrogen – one of the key components of the EU’s decarbonisation strategy – within Italy’s energy mix to ensure national and European climate neutrality targets are met by 2050.

The Puglia Green Hydrogen Valley project plans to build three green hydrogen production plants in Brindisi, Taranto and Cerignola (Foggia) for a combined capacity of 220 MW and powered by a photovoltaic production of 380 MW in total. Once the three plants are operational, it is forecasted that they will be able to produce about 300 million cubic metres of renewable hydrogen every year.

This green hydrogen will be used primarily for local industries, including through injecting – or blending – the hydrogen into Snam’s local gas network and/or employed for sustainable mobility.

For one of these three plants, the authorisation process is already underway for the Brindisi project which will involve the construction of a production plant for green hydrogen using electrolysers with a capacity of 60 MW that will be powered by a PV farm.

The entire Puglia Green Hydrogen Valley project will enable to sustain and involve key regional players, including the Acquedotto Pugliese water supply company, the Appulo Lucane Railways, Puglia’s technological and production districts, the Polytechnic of Bari, the Universities of Bari, Foggia and Salento. Moreover, there will be investments in the research and development aimed at promoting the creation and development of competencies and a production chain dedicated to the hydrogen industry in Puglia.

The agreement represents a fundamental milestone in the establishment of a hydrogen industry in Italy by creating new opportunities in terms of employment and competencies.

With this agreement Edison confirms its role as a key player also in the sector of green hydrogen, a technology that has synergies both with the company’s core business, which covers the entire value chain in the energy sector, and with its strategic development plan.

Thanks to the most extensive network in Europe and its technological expertise, Snam is promoting its role as an enabler of the hydrogen valley ventures, by contributing to the development of projects and connecting production and consumption points.

Saipem wishes to emphasise the importance of this project in terms of its contribution to the recovery plan for Italy. The company is involved in the development of technologies and innovative business models in the green hydrogen and renewable energies sectors as part of the evolution process of its portfolio of skills. Saipem confirms its role as the ideal partner for supporting its clients in the energy transition process in order to meet net zero targets.

Finally, Alboran’s determinations regarding green hydrogen are perfectly aligned with the Italian and European strategies. The involvement of other strategic partners in this venture will make it possible to maximise the potential of the project model that has been proposed for Puglia. 

In order to execute the project, the partners anticipate creating a special purpose company (Alboran 30%, Edison 30%, Snam 30%, Saipem 10%) following the signing of binding agreements that still have to be negotiated by the parties, based on the relevant regulatory frameworks, including the ones concerning operations among related parties.

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