Italy Electrolyzer Market Overview, 2030

The Italian electrolyzer market is gaining momentum, propelled by the country’s national hydrogen strategy that targets the deployment of 5 GW of electrolyzer capacity by 2030 and aims for 20% hydrogen penetration in final energy demand by 2050. This strategy is backed by major financial support over €1.14 billion allocated under the National Recovery and Resilience Plan, resulting in a 93% surge in hydrogen initiatives in 2023 compared to the previous year. Incentives include simplified authorisation pathways, exemptions from excise duties and system charges for renewable-powered hydrogen production, and tax benefits to bolster consumption in the transport sector. Regulatory progress includes recognizing hydrogen as a renewable energy source since 2016 and alignment with ISO standards to remove previous infrastructure barriers. Innovation is clearly visible an Anion Exchange Membrane electrolyzer capable of producing 500 kg of green hydrogen per day is being developed for the Sicily Hydrogen Valley project, powered by solar energy and designed with high purity and efficiency in mind. High-pressure, modular electrolyzer design is also being adopted, with one system delivering hydrogen at 40–220 bar and optimized energy use of 55 kWh per kilogram. Pilot efforts take shape across industries Italgas and Edison are blending up to 20% green hydrogen into the energy supply for a Sardinian food-processing facility. Integration with renewable resources is advancing such as a 4 MW PEM electrolyzer installed at a Northern Italy refinery, paired with on-site photovoltaics to supply clean hydrogen for industrial use.

According to the research report ""Italy Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the Italy Electrolyzer market is anticipated to grow at more than 29.93% CAGR from 2025 to 2030. Italy’s electrolyzer sector is energized by a unique combination of renewable energy resources, industrial demand, and strategic infrastructure projects. Key growth drivers include decarbonisation objectives for sectors like steel and refining, supported by private–public investment and growing public acceptance. High-profile developments reinforce this narrative the “Green Hydrogen Valley” in Puglia will harness 160 MW of electrolysis linked to 260 MW of solar PV to decarbonise major steel operations near Taranto. Meanwhile, Sicily’s Hydrogen Valley project in Giammoro is commissioning a 1 MW AEM electrolyzer fuelled by a 4 MW solar plant to support mobility, logistics, and industrial decarbonisation. The first industrial-scale use of a 4 MW PEM electrolyzer in a Northern Italy refinery demonstrates operational viability, producing at least 167 tonnes of green hydrogen annually. Regional mobility innovation is also visible in Valcamonica, where hydrogen-powered trains will replace diesel units with on-site electrolyzers providing clean fuel for locomotion. Partners include major energy companies like Enel, Eni, Duferco, and Ansaldo Green Tech, supported under EU IPCEI programs worth billions. These initiatives are backed by Italy's membership in the Southern Hydrogen Corridor project, intending to transport hydrogen from North Africa into Italy and onward to central Europe. Despite high capital expenditures and infrastructure challenges, emerging value streams like blending hydrogen into existing gas networks, industrial hydrogen use, and hydrogen-enabled transport are strengthening business cases. The geographic spread from Puglia and Sicily to industrial North reflects regional diversity and opportunity, while research bodies like ENEA underpin continuing R&D into high-efficiency stacks and system resilience.

In the Italy electrolyzer market, Alkaline Electrolyzers are a well-established technology, particularly favored for large-scale, cost-effective hydrogen production. These electrolyzers work by utilizing an alkaline solution like potassium hydroxide (KOH) as the electrolyte, facilitating the production of hydrogen through water electrolysis. They are recognized for their maturity and scalability, making them suitable for industrial applications such as refining and chemical production. However, their slower response time and lower efficiency in fluctuating renewable energy conditions pose challenges for their integration into dynamic, renewable-heavy power grids. On the other hand, Proton Exchange Membrane (PEM) electrolyzers are gaining traction in Italy due to their ability to operate efficiently with intermittent renewable energy sources like wind and solar. PEM technology uses a solid polymer membrane for proton transport, enabling the production of high-purity hydrogen. Their quick response times make them ideal for decentralized energy storage and fuel cell vehicle (FCEV) refueling stations. However, the main limitation of PEM electrolyzers in Italy is the high cost of catalyst materials like platinum, and their relatively shorter operational lifespans compared to alkaline systems. Another promising technology in the Italian market is Solid Oxide Electrolyzers (SOEC), which operate at high temperatures (around 700–1,000°C) to produce hydrogen with higher efficiency than traditional methods. SOECs are particularly useful when integrated with waste heat from industrial processes, offering excellent energy efficiency. The key barriers to their wider adoption include material stress and durability challenges, as well as the need for further development to make them commercially viable. Anion Exchange Membrane (AEM) electrolyzers are in the early stages of development, but they hold promise due to their cost-effectiveness and the potential to work with non-precious catalysts, making them an attractive option for future hydrogen production in Italy.

The Power-to-Gas (PtG) sector is one of the most important applications of electrolyzers in Italy, as it directly supports the country’s efforts to integrate renewable energy into the grid. PtG technology enables the conversion of excess renewable electricity into hydrogen through water electrolysis, which can then be stored or injected into the national gas grid. This helps to address the challenges posed by the intermittency of renewable power, allowing for more reliable energy delivery and a reduction in carbon emissions. Furthermore, Energy Storage and Fueling for Fuel Cell Electric Vehicles (FCEVs) is another rapidly expanding application. Italy is a key player in the development of hydrogen refueling infrastructure, particularly with its national commitment to reducing greenhouse gas emissions. Electrolyzers play a crucial role in providing hydrogen for FCEVs, helping to establish a nationwide network of refueling stations to support the growing adoption of hydrogen-powered transport. The Industrial Gases sector in Italy also benefits from electrolyzers, which produce high-purity hydrogen needed for various industrial processes, such as refining, ammonia production, and electronics manufacturing. Additionally, Steel Plants in Italy are increasingly turning to hydrogen, particularly through the Direct Reduced Iron (DRI) process, to reduce carbon emissions in the steel-making process. Hydrogen-based methods are seen as a key part of Italy’s strategy for decarbonizing heavy industries. Electronics and Photovoltaics sectors in Italy also utilize ultra-pure hydrogen for the production of semiconductors and photovoltaic cells, where high purity is essential for achieving product quality standards. Beyond these applications, the Others category encompasses emerging uses of electrolyzers in aviation for hydrogen-powered aircraft, the production of sustainable aviation fuel (SAF), and ammonia or methanol synthesis for fertilizer and chemical industries.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Electrolyzer Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Alkaline Electrolyzer
• Proton Exchange Membrane (PEM)
• Solid Oxide Electrolyzer (SOE)
• Anion Exchange Membrane (AEM)

By Application
• Power Plants
• Energy Storage or Fueling for FCEV's
• Industrial Gases
• Power to Gas
• Steel Plant
• Electronics & Photovoltaics
• Others Show more