The European Commission (EC) has approved a €6 billion Italian scheme under EU State aid rules to support renewable hydrogen production for transport and industry. The programme aims to develop renewable hydrogen capacity in line with the EU Hydrogen Strategy and Clean Industrial Deal, targeting 200,000 tonnes annually. The renewable hydrogen can be produced both from renewable electricity through electrolysis and from biogenic sources through biological, bio-thermochemical or thermochemical processes.
The aid will be provided through two-way contracts for difference, setting a strike price through competitive bidding. If the price of an alternative fuel falls below the strike price, Italy pays producers the difference, else if it exceeds the strike price, the producers would pay back. The scheme is planned to run until 31 December 2029.
In March 2026, the EC approved a €5 billion Danish state aid scheme to support offshore wind energy development. The scheme will support the construction and operation of two offshore wind farms, Hesselø and North Sea I Mid. Hesselø is expected to have a minimum capacity of 0.8 GW and generate around 3.2 TWh annually, while North Sea I Mid is projected to have at least 1 GW capacity with an annual generation of approximately 4.6 TWh.
