Hydrogen market in Italy

Earlier Report Observations

The Italian hydrogen market from 2018 to 2020 was shaped by early policy and regulatory foundations. The publication of preliminary national strategy guidelines in 2018, followed by the HyLAW framework in 2019 which established safety and transport rules, provided operational clarity for producers. This supported a rise in market volume to 324.2 million cubic meters in 2019. The strategy's further definition in 2020, introducing Important Projects of Common European Interest (IPCEI) and clarifying roles for state-owned firms like Eni and Snam, contributed to market stabilization at 319.8 million cubic meters in 2020.

The period from 2021 to 2022 saw the introduction of key mechanisms to foster a renewable hydrogen market. In 2021, the government launched a system of guarantees of origin for renewable hydrogen, creating traceability and value. This was accompanied by the emergence of new domestic startups. The following year, the EU's REPowerEU directive set binding targets, while Italy's updated energy plan allocated significant public funding for production and distribution. Combined with administrative simplifications for new plants, these measures drove a recovery in market volume to 294.1 million cubic meters in 2022, even as market value surged due to higher valuation of certified hydrogen.

Market transformations accelerated from 2023 to 2024 with the activation of numerous Hydrogen Valley projects and the entry of major international players like Air Liquide. The transposition of EU certification rules and the finalization of Italy's National Hydrogen Strategy in late 2024, which earmarked billions for infrastructure and introduced a national market managed by ARERA, set a comprehensive long-term framework. During this phase of strategic rollout and project development, the physical market volume declined to 174.9 million cubic meters in 2024.

Production hydrogen in Italy

In value, 2017-2020, M $ US

Italy's hydrogen production value declined for the third consecutive year. In 2020, hydrogen output was valued at 72.4 million US dollars, representing a 7.2% decrease compared to the previous year. Between 2017 and 2020, production value fell by 59.8%, with an annual compound growth rate of -26.2%.

Annual dynamics of production in Italy in value, 2017-2020, M $ US

In kind, 2017-2020, M m³

In 2020, Italy produced 318.9 million cubic meters of hydrogen, down 1.4% from 2019. Between 2017 and 2020, production volume decreased by 63.8%, equivalent to an annualized decline of 28.7%. The lowest production level was recorded in 2018 at 297.7 million cubic meters. The sharpest drop occurred in 2018 with a 66.2% decrease, while the largest increase was in 2019 at 8.7%.

Annual dynamics of production in Italy in kind, 2017-2020, M m³

Exports hydrogen from Italy

Exports in kind, K m³

Italy's hydrogen export volumes declined for the third consecutive year. In 2020, exports reached 260 thousand cubic meters, marking a significant 59.5% decrease compared to the previous year. Between 2017 and 2020, export volumes fell by 75.7%, with an annual compound growth rate of -37.6%.

Annual dynamics of product's exports from Italy in kind, 2017-2020, K m³

From 2017 to 2020, Malta, France, and Romania were the main destinations for Italy's hydrogen exports by volume. Malta accounted for 27.7% of exports, France for 18.7%, and Romania for 9.2%. Together, these three countries represented 55.5% of Italy's total hydrogen exports by volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Italy in kind, 2017-2020

Exports in value, K $ US

Italy's hydrogen export value declined for the second consecutive year. In 2020, exports totaled 375 thousand US dollars, a 35.0% decrease from 2019. Between 2017 and 2020, export value fell by 25.2%, with an annual compound growth rate of -9.2%. The highest export value was recorded in 2018 at 676 thousand US dollars, which also saw the largest increase of 34.8%.

Annual dynamics of product's exports from Italy in value, 2017-2020, K $ US

From 2017 to 2020, Italy's hydrogen export market by value was fragmented, with no single dominant destination. Malta accounted for 18.7% of export value, while Egypt and Slovenia each represented 8.9%. Together, these three countries comprised 36.5% of total export value, with numerous smaller partners holding modest individual shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Italy in value, 2017-2020

Imports hydrogen to Italy

Imports in kind, K m³

Italy's hydrogen import volumes declined for the third consecutive year. In 2020, imports totaled 1 000 thousand cubic meters, a 10.9% decrease compared to 2019. Between 2017 and 2020, import volumes fell by 49.1%, with an annual compound growth rate of -20.1%.

Annual dynamics of product's imports to Italy in kind, 2017-2020, K m³

From 2017 to 2020, France dominated Italy's hydrogen imports by volume, accounting for 81.5% of total flows. Other trading partners held relatively minor shares during this period.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Italy in kind, 2017-2020

Imports in value, K $ US

Italy's hydrogen import value declined for the second consecutive year. In 2020, imports stood at 972 thousand US dollars, down 20.7% year-over-year. Between 2017 and 2020, import value decreased by 46.3%, equivalent to an annualized decline of 18.7%. The highest import value was recorded in 2018 at 1 827 thousand US dollars. The sharpest drop occurred in 2019 with a 32.9% decrease, while the largest increase was in 2018 at 0.9%.

Annual dynamics of product's imports to Italy in value, 2017-2020, K $ US

Throughout 2017 to 2020, France played the dominant role in Italy's hydrogen imports by value, accounting for 80.5% of total flows. Other markets collectively accounted for the remaining share.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Italy in value, 2017-2020