- Milan’s upcoming green hydrogen gigafactory, slated for completion by 2026, marks Italy’s largest initiative in renewable energy infrastructure, aiming to accelerate the shift from fossil-based to green hydrogen production.
- The project, a collaboration between De Nora and Snam, is backed by significant European funding and embodies a strategic component of Europe’s broader decarbonization goals.
- The GigaFactory will generate 200 direct jobs and and approximately 2,000 induced jobs, marking a significant economic impact and reinforcing Italy’s commitment to sustainable energy development.
Construction is underway for what will be Italy’s largest green hydrogen production facility in Cernusco sul Naviglio, near Milan. The facility, expected to be operational by early 2026, is being developed through a partnership between energy giants De Nora and Snam. This initiative will transform a formerly abandoned industrial site into a cutting-edge complex for manufacturing electrolysers essential for green hydrogen production.
The gigafactory represents a substantial investment in the future of renewable energy, with funding of about 100 million euros, supported in part by the National Recovery and Resilience Plan (Pnrr) and the European IPCEI Hydrogen initiative. This investment underpins Italy and Europe’s commitment to integrating green hydrogen into their energy matrices as a critical tool for decarbonization.
Despite its potential, the gigafactory confronts significant challenges. The global hydrogen market is predominantly occupied by grey and black hydrogen, produced from fossil fuels, which currently amounts to 95 million tonnes annually. This production contributes considerably to global CO2 emissions. The transition to green hydrogen involves overcoming significant technological and economic barriers, notably scaling up electrolyser technology from the current European capacity of about 1 GW to the targeted 40 GW by 2030 as outlined in the EU RePowerEU program.
Technological advancements are required to enhance the efficiency and reduce the costs of electrolysers to meet these ambitious goals. Economically, the viability of green hydrogen depends on achieving cost competitiveness and establishing a comprehensive supply chain. The Milan factory, powered by photovoltaic panels, is a step forward, but broader infrastructure for production and distribution must also evolve to support market penetration effectively.
Paolo Dellachà, CEO of De Nora, advocates for a model of distributed production centers to adapt to the decentralized nature of future energy systems, moving away from traditional large-scale centralized facilities. This approach is crucial for integrating into the existing and forthcoming hydrogen markets across Europe.
As a potential cornerstone in combating climate change, green hydrogen offers a sustainable alternative to fossil fuels, assuming the production lifecycle remains environmentally friendly. The success of the Milan gigafactory, and its role in Europe’s hydrogen strategy, will significantly influence the adoption of green hydrogen technologies and their ultimate environmental impact.
Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks
