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Hydrogen is emerging as a cornerstone of Italy's decarbonization strategy. With bold targets set in the hydrogen strategy, the country aims for 2% hydrogen penetration and 5 GW of electrolysis capacity by 2030 and 20% hydrogen penetration by 2050.

The government’s focus includes integrating hydrogen into hard-to-abate industrial sectors, heavy transport and non-electrified railways. Major projects such as the H2 Corridor South aim to connect North Africa’s hydrogen imports with Austria and Germany, which could account for 40% of Europe’s hydrogen imports.

Supported by the EU Hydrogen and Gas Decarbonisation Package and funded through the Recovery and Resilience Plan, initiatives such as the Hydrogen Valleys underline Italy’s ambition to lead the renewable gas transition in Europe.

Biomethane, biogas enhanced with the qualities of natural gas, is revolutionizing the Italian energy landscape. By 2026, Italy is expected to produce 4 billion cubic meters of biomethane per year, after the 2.3 billion cubic meters produced in 2021, equal to 3.3% of the country's gas supply.

The government’s €4.5 billion biomethane support scheme and existing infrastructure, such as over 1,000 CNG stations, underscore Italy’s readiness to exploit biomethane in transport and other sectors. Linking biomethane production with agriculture, agri-food industry and digestate application at local level further amplifies its potential to reduce dependence on natural gas and promote sustainability.