Axpo and ENEGO Contemplate Building 100 MW Green Hydrogen Plant in Sicily

On April 9, 2024, Axpo and French energy investor ENEGO revealed the signing of a collaboration agreement to explore the viability of establishing a 100 MW green hydrogen facility in Sicily. Situated in the Priolo-Augusta industrial complex along the island's eastern coastline, the project aims to contribute to the formation of a 'hydrogen valley' stretching between Catania and Siracusa. This initiative is poised to address the rising demand for green energy in the surrounding industries. For Axpo, this venture signifies another stride forward in its strategy to actively participate in shaping the green hydrogen sector in Switzerland and across Europe.

Axpo is set to evaluate the feasibility of establishing a 100 MW green hydrogen production facility in southeastern Sicily, collaborating with HYNEGO, a subsidiary of ENEGO Holding, a French firm specializing in energy transition investments. The plant's capacity could potentially be expanded to 300 MW based on demand. Positioned within the Priolo-Augusta petrochemical complex, the plant aims to supply green hydrogen to local industries and transportation sectors. Moreover, its development is anticipated to contribute to the formation of a 'hydrogen valley' in Sicily, with potential integration into the European hydrogen network through the European Hydrogen Backbone (EHB) initiative.

Guy Bühler, Head of Hydrogen at Axpo, expressed enthusiasm about the collaboration with ENEGO, emphasizing the project's significance in advancing decarbonization efforts, particularly in the Priolo-Augusta region, home to a nationally significant industrial complex. Bühler highlighted the potential for the proposed plant to replace the current use of grey hydrogen, derived from natural gas, with carbon-free hydrogen, offering a sustainable alternative. Alfonso Morriello, CEO of ENEGO Holding, hailed the partnership as a significant milestone for the HYNEGO Priolo-Augusta initiative. He underscored the project's origins in collaboration with local entities and the scientific expertise of the University of Catania's Engineering Department. Morriello emphasized the commitment of all stakeholders to leverage green hydrogen as a competitive advantage for the local economy, highlighting the project's pioneering role in Sicily and its substantial contribution to the EU's decarbonization goals.

This recent endeavor underscores Axpo's dedication to advancing sustainable energy technologies and facilitating the transition to a greener, low-carbon future. Over the coming months, Axpo and ENEGO will embark on a feasibility study to assess the project's costs and develop a comprehensive business plan. Concurrently, Axpo is collaborating with Australian firm IGE to establish one of Italy's largest hydrogen production facilities in the Peligna Valley of central Abruzzo. Furthermore, in partnership with SGV shipping company, Axpo is spearheading the development of Switzerland's first hydrogen-powered passenger vessel on Lake Lucerne. Axpo will supply the necessary green hydrogen for the vessel's operation, which will be produced locally at a newly established facility in Bürglen. Additionally, Axpo is engaged in a mobility initiative in France, known as the "Arve Hydrogène Mobilité" (Arv'Hy) project, aimed at enabling hydrogen-powered vehicles to refuel at an H2 filling station starting from the first quarter of 2025. Notably, Axpo has recently published a white paper highlighting the potential of hydrogen, particularly within Switzerland, showcasing its expertise in the realm of green energy carriers.