Monday 30 November 2020
Italian energy group Snam targets net zero emissions by 2040
Italian energy infrastructure group Snam has set a target for net zero carbon emissions by 2040, in line with the goal set in the Paris climate agreement.
It has raised its carbon reduction target to 50% of Scope 1 and Scope 2-equivalent emissions by 2030, before achieving net zero emissions within the next two decades.
The company plans to invest almost €7.4 billion (£6.6bn) over the next four year, with €6.7 billion (£6bn) supporting energy infrastructure projects, focused on “hydrogen ready” replacements, digitalisation and decarbonisation.
A total of €720 million (£646m) will support the energy transition, out of which €220 million (£197m) be invested in biomethane infrastructure to reach a capacity of at least 64MW, €200 million (£179m) in energy efficiency and €150 million (£135m) in hydrogen for the conversion of railway lines and the installation of fuel cells in the Snam network.
Around €150 million (£135m) will be invested in mobility to expand the distribution infrastructure with a focus on liquefied natural gas (LNG) and the launch of the first hydrogen distributors.
Snam CEO Marco Alverà said: “The 2020-2024 plan opens a new phase in the history of Snam, which in the climate challenge is ideally positioned to play an important role in the energy transition, with a long term vision consistent with its purpose and European objectives. Snam will be one of the first energy companies to reach carbon neutrality in 2040 and provide a wide contribution to the decarbonisation of the system through the development of green gases and in particular, hydrogen.
“The repositioning of the company over recent years and the actions envisaged in the new plan, together with the skills of our people and growing digitalisation, put us in the ideal condition to seize the new opportunities arising from the energy transition.
“We have visibility on our 'future-proof' infrastructure, we are amongst the pioneers in hydrogen development and we are growing rapidly in other businesses which are strengthening the whole green gas value chain. We are becoming an international operator, with a focus on the most relevant areas for the development of gas use for 'fuel switching' and energy transition. Through this strategy, combined with our financial flexibility and cost-competitive access to markets, we offer attractive returns for our shareholders.”
