Italian engineering provider Saipem has teamed up with compatriot energy group Edison to acquire a majority stake in green energy developer Alboran Hydrogen’s project in the south of the country.

Saipem and Edison will take ownership, via a special purpose vehicle, of 50% and 10% respectively of Alboran Hydrogen Brindisi, which is developing the Puglia Green Hydrogen Valley project.

The initiative aims to set up infrastructure for large-scale production and transport of green hydrogen in Italy, with three production facilities in the cities of Brindisi, Taranto and Cerignola, in the southern region of Puglia.

The plants will have a combined electrolysis capacity of 220 megawatts, that will be powered by 400 MW of solar energy. The companies did not give a timeline for the completion of the project.

Once fully operational, the facilities will produce nameplate output of up to 300 million cubic metres per annum of green hydrogen, which will be used to power local industry and transport, also by means of injection into the local gas grid.

The project aims to help the transition of Italy’s energy mix towards a sustainable model, Saipem claimed, citing that Puglia’s industrial sector accounts for about 6% of Italy’s total energy demand from industry.

“The company aims to use green hydrogen to replace fossil fuels in energy-intensive industrial processes and to make heavy transport sustainable,” said Giovanni Brianza, chief executive of Edison Next, Edison’s renewables arm.

Saipem will holds an exclusive right for the project implementation, the company said.

Alboran Hydrogen is a subsidiary of EN.IT Group, operator in the renewable energy sector active in 12 countries.