Integration of green hydrogen into an industry in Italy

The Hy2Market Sicilian pilot represents one of the most advanced real world demonstrations of how green hydrogen can be integrated into an existing industrial energy system. Implemented at the Duferco industrial site in Giammoro, Sicily, the project brings together an ecosystem of industrial partners and research institutions with the shared objective of validating a complete hydrogen value chain, from renewable hydrogen production to its final use in a 58 MW peaker gas turbine. At the heart of the initiative is the deployment of De Nora’s 1 MW Dragonfly® alkaline electrolyzer, a containerized and fully integrated system capable of producing around 200 Nm³/h of high purity hydrogen at 29 bar, with a specific energy consumption of 53.7 kWh per kilogram of hydrogen produced. The electrolyzer is supported by its own water treatment and purification units and is fed by a 20,000 liter water reserve, ensuring operational continuity even under suboptimal water supply conditions. The hydrogen is first collected in a 1.6 m³ buffer tank and then directed to a dedicated oil free piston compressor that increases its pressure from approximately 29 bar to 200 bar, allowing the gas to be stored safely in six high pressure cylinders capable of accommodating around 202 kg of hydrogen. These components are housed within reinforced concrete bunkers designed according to ATEX and fire prevention regulations to ensure safe operation in all phases of the process. Once produced and stored, the hydrogen is injected into the natural gas supply line feeding the Siemens SGT A65 WLE peaker turbine. A static mixer installed along the fuel line enables a homogeneous blend containing up to 15% hydrogen by volume, a concentration selected to balance combustion stability, environmental benefits, and compatibility with existing turbine hardware. As a dispatch oriented plant, the turbine operates under the instructions of the Italian transmission system operator Terna, providing fast response balancing services essential for a grid increasingly dominated by intermittent renewable energy sources. The introduction of hydrogen into this context makes the pilot particularly relevant, as it demonstrates hydrogen’s ability to decarbonize flexible power generation, one of the most challenging segments of the energy system to electrify. A major component of the project is the extensive permitting, safety engineering, and compliance work coordinated by Duferco. The plant’s design adheres to the most recent Italian fire prevention regulations for hydrogen production and storage, including the Ministerial Decree of 7 July 2023, and to ATEX and PED directives governing explosive atmospheres and pressure equipment. The hydrogen production facility does not require an Environmental Impact Assessment, nor is an Integrated Environmental Authorization necessary under the new European directive, given its modest production capacity. Detailed safety distance analyses, structural designs compliant with Date: 2026-02-16 6 Document number: Hy2market-D2.5-1.0-2307 Version: 2.0 NTC 2018 seismic standards, and a comprehensive risk evaluation framework ensure that the plant operates within the highest safety margins. CNR ITAE has complemented these engineering activities with a simplified combustion modelling performed using COMSOL Multiphysics. By simulating both natural gas operation and a 15% hydrogen blend, the study demonstrated that the model reproduces trends consistent with real turbine data, providing a reliable interpretation of the environmental impact of hydrogen integration. The results show clear benefits: NOx emissions decrease by about 13%, carbon monoxide by nearly 39%, and carbon dioxide by almost 9%, while turbine outlet temperature drops by more than 5%. These improvements are achieved without compromising combustion stability, thanks also to controlled water injection within the turbine. The modeling confirms that even modest hydrogen blending can yield meaningful decarbonization effects in high flexibility gas turbine systems. With detailed engineering completed and component manufacturing scheduled to conclude by February 2026, installation is expected to proceed by late spring of the same year. The Hy2Market Sicilian pilot thus stands as a strategic milestone for both Sicily and Europe. It demonstrates not only the technical feasibility of hydrogen natural gas co firing in industrial scale turbines but also the regulatory, infrastructural, and operational pathways needed to replicate similar installations in other industrial clusters. SNAM’s involvement further enhances the project’s strategic depth, providing guidelines for extending the model to regional gas networks, petrochemicals, and refineries, and contributing to the vision of a Sicilian Hydrogen Valley aligned with the goals of REPowerEU.