EU awards 370 million euros to Puglia Green Hydrogen Valley project
The European Commission selected the Puglia Green Hydrogen Valley project for 370 million euros in IPCEI funding to build two electrolysis plants totalling 160 megawatts in Italy. For Indian green hydrogen ambitions, the award highlights the scale of public investment required to make large-scale green hydrogen economically viable.
The Puglia Green Hydrogen Valley project was selected for IPCEI funding of 370 million euros under the Hy2Infra programme. The initiative involves building two plants in Brindisi and Taranto with total electrolysis capacity of 160 megawatts, projected to produce around 250 million cubic meters of green hydrogen annually once operational. Hy2Infra includes 33 projects from 32 companies across seven member states: France, the Netherlands, Poland, Germany, Italy, Portugal, and Slovakia. Member states will provide up to 6.9 billion euros in public investment, expected to unlock an additional 5.4 billion euros in private investment, totalling 12 billion euros.
The Puglia Green Hydrogen Valley project participants are directly affected, including Sosteneo SGR, part of the Generali Investments ecosystem, alongside Edison and Saipem, recognised by the Puglia Region as strategic for energy transition. The project targets decarbonisation of the manufacturing sector, particularly the Apulian steelmaking hub. Across Hy2Infra, 32 companies in seven member states benefit from public investment. Participants will be among the first to address technical challenges of large-scale green hydrogen infrastructure, gaining operational experience valuable to other market players seeking to scale green hydrogen production.
Green hydrogen developers should monitor the Puglia Green Hydrogen Valley project's construction of two plants in Brindisi and Taranto, totalling 160 megawatts and projected to produce 250 million cubic meters of green hydrogen annually. Industry players should note the scale of public funding, with up to 6.9 billion euros across Hy2Infra expected to unlock 5.4 billion euros in private investment. Companies pursuing green hydrogen should track how public financing and incentives make initial investment and construction costs economically sustainable, and watch the operational experience generated by these first-mover infrastructure projects.
Key figure — IPCEI funding awarded to Puglia Green Hydrogen Valley: 370 million euros
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