Italy's Saipem agrees deal for five green hydrogen plants

Two other plants will be built in Albania and Morocco

  

MILAN- Energy services group SaipemSPMI.MI has agreed with Italian renewables company Alboran Hydrogen to build five green hydrogen plants in Italy and the Mediterranean basin.

In a joint statement on Thursday, the companies said they would develop plants in three Italian cities in the southern region of Apulia to create a green hydrogen belt.

Two other plants will be built in Albania and Morocco, they said, adding that the Moroccan plant would produce ammonia from green hydrogen.

Green hydrogen is a zero-carbon fuel made by electrolysis, using renewable power from wind and solar to split water into hydrogen and oxygen.

Saipem, a market leader in subsea exploration and construction, is developing new lines of business to meet an increasing client focus on green technologies.

"The agreement with Alboran Hydrogen consolidates Saipem's position ... in the energy transition," said Maurizio Coratella, chief operating officer of Saipem's onshore engineering and construction division.

The European Union is keen to promote development of green hydrogen for sectors where it is hard to decarbonise or where electrification is difficult as the bloc looks to hit emission reduction targets.

(Reporting by Stephen Jewkes Editing by Maria Pia Quaglia and David Goodman ) ((stephen.jewkes@thomsonreuters.com; +39.0266129695; Reuters Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))

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