Italy's top energy companies Enel SpA and Eni SpA have agreed to work together on plans to supply green hydrogen to two refineries in Italy.

The two pilot projects will involve building close to the Eni refineries 10-megawatt electrolyzers powered by renewable energy that will start producing hydrogen by 2022-2023.

"We are interested in exploring with Eni the promising green hydrogen sector," Enel CEO Francesco Starace said in a statement.

Enel, one of the world's biggest renewable energy companies, is developing green hydrogen projects in Spain, Chile and the U.S. and has plans to take its capacity to over 2 gigawatts by 2030.

Eni, which earlier this year announced one of the most ambitious clean-up drives in the oil and gas industry, is looking to hydrogen to help cut its carbon footprint.

In the Dec. 2 statement, the companies said Eni was studying other hydrogen projects in Italy and in the U.K., adding in the case of the two Italian refineries green hydrogen appeared to be the best decarbonization option.

Italy is targeting hydrogen investments of around 10 billion euros (US$12 billion) to 2030, with half of the amount coming from European funds and private investments.

($1 = 0.8298 euros)