From pasta to power: Italy’s transition to green hydrogen presents investment opportunities
Italy achieved a record-breaking year for solar and wind energy production in 2023, according to Terna, the country’s grid operator. Wind farms generated 23.4 Terawatt hours (TWh), while solar panels reached 30.6 TWh, surpassing previous records. Renewable energy sources, including hydro, met almost 37% of Italy’s electricity demand, up from 31% in 2022. Despite these gains, Italy is still behind its target of achieving 70% of electricity from renewables by 2030.
In conversation with Euronews, Chris Rosslowe, a senior energy and climate data analyst at the think tank Ember, noted that while the increase in renewable energy is significant, it is partly due to a recovery in hydropower production after a drought in 2022. Italy’s national energy and climate plan (NECP) indicates that to meet its 2030 goal, wind and solar production needs to grow by 17% annually, compared to the 13% growth achieved last year. The increase in installed renewable capacity in 2023 was 5.8 gigawatts (GW), which is 2.7 GW more than the previous year but still below the needed 9 GW per year until 2030.
Alongside the rise in renewable energy, there was a significant reduction in fossil fuel-based power production. Gas and coal power plant outputs decreased by 17.4% and 42% respectively. This decline was partly due to a 2.8% drop in electricity consumption, reflecting ongoing impacts from the energy crisis, and also facilitated by electricity imports. The reduction in coal-fired production was influenced by the suspension of initiatives to maximize coal plant use, implemented during the peak of the gas crisis.
But despite the positive momentum in renewable energy, several challenges persist. The growth in wind and solar energy is supported by technological advancements, such as improved interconnections and the development of electricity storage solutions. Right now, the land of pizza and pasta is ripe with blooming energy projects and juicy investment opportunities — such as these.
Believe it or not, Italy is making significant strides towards a sustainable energy future as it hosts several groundbreaking projects. Leading the charge is the solar panel factory in Catania, Sicily, which is establishing one of Europe’s largest solar panel factories. This facility aims to produce high-efficiency solar panels, enhancing Italy’s solar capacity and supporting the country’s renewable energy goals.
The factory is expected to create many local jobs and contribute significantly to the regional economy. Additionally, it will employ cutting-edge technology to maximize efficiency and reduce manufacturing costs, positioning Italy as a leader in the solar industry. This project aligns with Italy’s National Energy and Climate Plan (NECP), targeting a 55% renewable energy share by 2030.
It also underscores the country’s commitment to phasing out coal and reducing greenhouse gas emissions. The factory’s output will also play a crucial role in achieving Italy’s targets under the European Union’s Green Deal, which aims for climate neutrality by 2050. Ultimately, this initiative plans to integrate innovative recycling methods for old panels, minimizing waste and promoting a circular economy.
Another key development is the advancement of green hydrogen technologies in Spinetta, focusing on creating clean hydrogen for various industrial applications. Innovative solutions use renewable energy sources, contributing to Italy’s strategy to decarbonize the industry and transportation sectors.
The approach involves water electrolysis powered by solar and wind energy, ensuring zero carbon emissions in hydrogen production. This technology is poised to support the chemical, steel, and heavy transportation industries in reducing their carbon footprints. Projects also aim to enhance energy security by decreasing reliance on fossil fuel imports. Furthermore, there is collaboration with academic institutions to drive research and development in hydrogen technology, fostering innovation and technical expertise in Italy. These initiatives also involve developing infrastructure for hydrogen storage and distribution, which is essential for the widespread adoption of hydrogen as a fuel. The projects align with national and EU policies promoting the hydrogen economy as a key element in the energy transition.
Further bolstering Italy’s renewable energy portfolio is the Taranto Offshore Wind Farm, the first of its kind in the Mediterranean Sea. Located just off the coast of Taranto, this wind farm boasts a capacity of 30 MW and is poised to significantly boost the country’s wind energy production. The project will feature ten wind turbines, each with a capacity of 3 MW, strategically placed to optimize wind capture. Expected to generate around 80 GWh of electricity annually, it will power approximately 60,000 homes, reducing CO2 emissions by 730,000 tons over its operational lifetime. The construction phase has already provided a substantial number of jobs, with further employment opportunities anticipated during its operational phase.
Additionally, the project will contribute to Italy’s goal of sourcing 70% of its energy from renewables by 2030. The wind farm will also include an educational center to promote awareness and understanding of renewable energy technologies among local communities. Continuous environmental monitoring will be conducted to mitigate any potential impacts on marine ecosystems, ensuring sustainable development. The project has received support from both national and European funds, highlighting its strategic importance in regional energy planning.
Lastly, the green hydrogen plant in Porto Marghera, Venice, exemplifies Italy’s commitment to sustainable energy. This plant will use renewable energy to produce hydrogen, reducing the carbon footprint of various industrial processes and transportation systems. The facility will have an initial capacity of 10 MW, with plans to scale up to 50 MW based on demand. It aims to produce 4,000 tons of green hydrogen annually, supporting the decarbonization of the petrochemical and maritime sectors.
The project includes a partnership with local authorities to integrate hydrogen refueling stations for public transport, promoting clean mobility. This initiative is part of the broader European Green Deal, which seeks to achieve climate neutrality by 2050. The plant will also feature state-of-the-art technologies to enhance energy efficiency and minimize environmental impact. Significant investment in research and development will be made to improve electrolyzer efficiency and reduce production costs. There are also explorations to create a hydrogen hub in Venice, fostering collaboration with other industries and enhancing the region’s green energy ecosystem.
