KEY POINTS
- Snam to invest €14.5 billion ($15.8 billion) to prepare its gas grid for hydrogen and biomethane.
- The company plans to repurpose 70 percent of its gas network for hydrogen transport.
- Snam aims for carbon neutrality by 2040 and net zero by 2050.
In order to prepare its infrastructure for green fuels like hydrogen and biomethane, Snam, Italy’s top natural gas operator, has announced plans to invest €14.5 billion ($15.8 billion) between 2028 and 2032.
By modernizing its current gas infrastructure, Snam, which runs the biggest gas transport network in Europe, is establishing itself as a major force in the energy transition.
Green transition and hydrogen readiness
According to the state-owned corporation, it wants to convert up to 70 percent of its existing natural gas network to hydrogen, which is an essential component of Europe’s decarbonization initiatives.
Only 1 percent of Snam’s pipelines could become stranded by 2040, and less than 10 percent by 2050, per the company’s risk assessment. This strengthens the business’s belief that its infrastructure can be effectively modified to meet changing demands.
One of its main initiatives is the construction of a green hydrogen corridor, which will connect southern Italy and Africa to northern Europe and aid in the continent’s supply of green fuel.
Snam’s investment supports its objective of achieving net zero emissions by 2050 and carbon neutrality on Scope 1 and 2 emissions by 2040.
Biomethane, carbon storage, and energy transition
Snam is expanding its capacity to produce biomethane, which turns organic waste into pure gas, in addition to hydrogen.
In an effort to support Italy’s energy transformation, the business has also teamed up with the Italian energy major Eni to build carbon dioxide storage facilities there.
According to Reuters, Snam will also support these initiatives by promoting green renovation projects and building energy efficiency measures through its subsidiary, Renovit.
By 2027, the corporation intends to raise the share of sustainable finance in its portfolio from 80 percent in 2023 to 85 percent.
Sustainable goals and future outlook
Snam’s dedication to sustainability is not limited to its gas network. The corporation has committed to restoring landscapes wherever it constructs new infrastructure in order to positively benefit biodiversity by 2027.
This all-encompassing strategy guarantees that Snam is mindful of its wider environmental obligations in addition to energy-related ones.
Snam’s revised approach shows that it is prepared to adjust to the changing energy environment, guaranteeing that its network will continue to be essential to Europe’s future energy requirements while advancing Italy’s sustainability and decarbonization initiatives.
