The status of geothermal development for power generation in Italy as of the end of 1996 is presented Future development is dependent upon the acceptance of local residents; environmental conservation and socioeconomic aspects have thus become fundamental issues in ENEL activities. The results of an environmental assessment study carried out in the Mt. Amiata area, where several plants are in operation and others are planned, are outlined. Pollutant concentrations are well within the limits set by current legislation; however hydrogen sulfide (H2S) and mercury abatement is planned to avoid the odor nuisance of H2S and possible adverse effects from mercury buildup in the long term. The scheme for combined H2S and mercury abatement, developed for the particular characteristics of Italian geothermal fluids, is described The proposed technology is going to be demonstrated on a pilot scale and then on a 20 MW power plant.