Swiss renewable energy producer Axpo will work alongside French energy investor ENEGO to explore the potential of a 100 megawatt (MW) green hydrogen plant in Sicily.
With both firms having signed a cooperation agreement, the project is planned to be built in the Priolo-Augusta industrial complex on the island’s east coast and will lead to the creation of a ‘hydrogen valley’ running between Catania and Siracusa.
According to the partners, it will be possible to expand the plant’s capacity up to 300 MW, depending on demand.
Commenting on the project, Guy Buhler, Head of Hydrogen at Axpo, said, “This project is important for decarbonisation in the region, and especially in the Priolo-August district, which includes an industrial site of national importance.”
He added that the carbon dioxide (CO2)-free hydrogen produced at the plant will replace the grey hydrogen currently used by refineries at the site.
According to analysis carried out by SNAM with the support of McKinsey, in a decarbonisation scenario of 95% by 2050, hydrogen could supply about 23% of all energy demand in Italy (transport, building heating and industrial applications).
The analysis focuses on Sicily, identified as a possible energy bridge between North Africa and Italy. By exploiting the existing gas networks, hydrogen can be mixed with natural gas to facilitate the inclusion of hydrogen as an energy carrier.
“Today’s announcement is an important milestone for the HYNEGO Priolo-August project, which originated with the cooperation of many local entities and the scientific expertise of the University of Catania’s Engineering Department,” said Alfonso Morriello, CEO of ENEGO Holding.
Another project will see Axpo collaborating with IGE from Australia to build one of Italy’s largest hydrogen production plants in central Abruzzo’s Peligna Valley.
The company is also partnering with SGV shipping to plan Switzerland’s first hydrogen-powered passenger vessel on Lake Lucerne, with Axpo supplying the green hydrogen.
Additionally, Axpo is involved in a mobility project in France called ‘Arv’HY’, where hydrogen-powered vehicles can refuel at a hydrogen station starting in early 2025.
