Recently construction began on Italy’s largest green hydrogen factory in Cernusco sul Naviglio, near Milan.
Slated for completion by early 2026, this “gigafactory” represents a significant step in Italy’s and Europe’s commitment to green hydrogen as a crucial element in their decarbonization strategies.
The green hydrogen factory in Milan is a joint venture between De Nora and Snam, two major players in the energy sector. The project will transform a long-abandoned industrial site into a state-of-the-art facility dedicated to producing electrolysers and other components for green hydrogen production. With an investment of approximately 100 million euros, partially funded by the National Recovery and Resilience Plan (Pnrr) and the European IPCEI Hydrogen initiative, the factory aims to contribute significantly to Europe’s green hydrogen goals.
While the Milan gigafactory is a landmark project for Italy, it faces several technological and economic challenges. The global hydrogen market, currently dominated by grey and black hydrogen derived from fossil fuels, produces about 95 million tonnes of hydrogen annually, contributing to significant CO2 emissions. Transitioning to green hydrogen, produced via electrolysis using renewable energy, is essential but poses substantial hurdles.
The technological challenge lies in scaling up electrolyser capacity. Europe’s goal, as per the EU RePowerEU program, is to install 40 GW of electrolyser capacity by 2030. Currently, the European Union’s installed capacity is around 1 GW. Achieving this tenfold increase within six years is ambitious and requires significant advancements in electrolyser efficiency and cost reduction.
Economically, the success of green hydrogen hinges on the cost-competitiveness of production and the development of a robust supply chain. The Milan gigafactory’s reliance on photovoltaic panels for energy is a positive step, but the broader infrastructure for green hydrogen production and distribution must be developed concurrently to ensure market viability.
The Milan gigafactory is positioned to play a critical role in Europe’s hydrogen strategy. However, its impact will depend on how effectively it can integrate with existing and emerging hydrogen markets. De Nora’s CEO, Paolo Dellachà, emphasizes the need for distributed production centers rather than large centralized structures, which aligns with the industry’s shift towards decentralized energy systems.
Green hydrogen is touted as a solution to the climate crisis, offering a zero-emission alternative to fossil fuels. However, its environmental benefits depend on the sustainability of the entire hydrogen production lifecycle. The Milan gigafactory’s use of renewable energy for electrolysis is a positive indicator, but the broader adoption of green hydrogen technologies will determine the overall environmental impact.
