Hydrogen will be used to produce direct reduction iron and decarbonize the country's steel industry
The European Commission (EC) has allocated €402 million in funding to create a green hydrogen hub in the Italian region of Apulia. Reuters reports this with reference to the energy companies involved in the project.
Green hydrogen, produced from renewable energy sources, is expected to replace fossil fuels in some energy-intensive industries in the EU, as the bloc has big ambitions to reduce carbon emissions.
Green Valley will provide 260 MW of solar power generation and 160 MW of electrolysis capacity for hydrogen production near the cities of Brindisi and Taranto.
The fuel will be used in the production of direct reduced iron (DRI) to decarbonize the steelmaking process at Italy's largest steelworks, in Taranto (ADI), and in a consortium of other steelmakers.
As previously reported by Compraço, in 2023, Italian steel mills reduced steel production by 2.5% compared to 2022, to 21.06 million tons. The decline in steel production was driven by a decline in global demand for steel products and high energy costs.
The production of long products in the year was 11.68 million tons, a drop of 2.9% compared to 2022, and the production of flat products totaled 9.54 million tons (-0.1% per year).
The European Commission recently approved an Italian scheme worth €550 million to support investments in the use of hydrogen in industrial processes. The Italian government will provide this support to industries that are difficult to decarbonize from a technological and economic point of view, such as steel, paper, glass, among others. The funds will be available until the end of 2025 and will be used to replace fossil fuels with green hydrogen.
