Italy’s overall energy mix (including heating, transport, and industry) is dominated by fossil fuels, which provide nearly 80% of Italy’s needs. Natural gas (39.8%) is mostly used for electricity generation and heating; however, renewables account for 41.2% of generation, a record high. Oil dominates the transport sector.

Italy is positioning itself as a central European hub for green hydrogen, leveraging its strategic Mediterranean location to connect North African production with European demand. As of February 2026, the country has locked EU green hydrogen targets into national law through the RED III Directive, mandating specific usage for industrial and transport sectors.

Several facilities are already operational, including Hyround in Sestu, Sardinia; Porto Marghera, featuring a 5 MW electrolyzer by Sapio; SoutH2 Corridor, a 3,300 km pipeline initiative led by Snam to transport green hydrogen from North Africa (Algeria, Tunisia) to Italy, Austria, and Germany; and Modena Hydrogen Valley, a joint venture between Snam and Hera capable of producing 400 tons of green fuel annually for local transport and energy-intensive industries.