Italgas has officially launched Italy’s first green hydrogen production plant connected to a local gas distribution network, marking a major milestone in the country’s energy transition.
Located in Sestu, Sardinia, the solar-powered 500kW facility is expected to produce around 21 tonnes of hydrogen annually, increasing to 70 tonnes per year by 2028. The project, named Hyround, uses Power-to-Gas electrolysis technology to convert renewable electricity into hydrogen, which is then blended with natural gas and distributed to households, small businesses, and even a local dairy facility. Hydrogen from the site will also fuel a fleet of buses and supply an adjacent refuelling station funded in part by Italy’s National Recovery and Resilience Plan (PNRR).
“Italgas’ Hyround confirms the central role of renewable gases and gas distribution networks as key elements of the energy transition,” said Paolo Gallo, CEO of Italgas Reti.
The €15 million investment includes €1.5 million ($1.6 million) in public funding from the PNRR and places Sardinia at the forefront of Italy’s hydrogen rollout strategy. The company’s leadership was joined at the ribbon-cutting by Minister of the Environment and Energy Security Gilberto Pichetto Fratin, alongside local and regional officials.
By integrating electrolysis, solar energy, and existing pipeline infrastructure, Hyround offers a live demonstration of how hydrogen can decarbonise distributed energy without waiting for a dedicated hydrogen grid. It also reflects growing EU support for using blended hydrogen in heating and transport applications as part of the broader gas network decarbonisation strategy. With national hydrogen production targets still in early stages, Italgas’ Sestu facility could set the tone for broader deployment of grid-integrated renewable hydrogen across Italy.