Page 14 - EurOil Week 48 2020

EurOil POLICY EurOil

Snam sets sights on

hydrogen future

ITALY ITALY’S Snam has set clean energy investment turbine using 10% hydrogen and 90% gas. It is
as a cornerstone of its latest five-year spending due to be installed in 2021 at the Istrana plant,
The Italian gas grid plan, placing particular emphasis on hydrogen and tests are currently underway to verify the
operator has also made development. maximum quantity of hydrogen that can be
a net-zero commitment. Europe’s largest pipeline operator plans to introduced into the turbines and compressors.
invest €7.4bn ($8.8bn) in its operations between Snam plans to devote a further €720mn to
2020 and 2024, up from €6.5bn in 2019 through its energy transition business between now and
2024. Some €6.7bn of the proposed sum will go 2024, or double the amount it allocated in its pre-
towards regulated energy infrastructure, focus- vious five-year plan. About €220mn will be spent
ing on hydrogen-ready replacements, digitalisa- on developing 64 MW of biomethane infrastruc-
tion, decarbonisation and the supply of gas to the ture, €200mn on energy efficiency and €150mn
island of Sardinia. on converting trains to run on hydrogen and
Hydrogen-ready infrastructure will account installing hydrogen fuel cells in its network.
for around 50% of the €6.7bn. This will initially An additional €150mn will go towards the
involve upgrades to around 1,200 km of its gas mobility sector, to be spent on expanding distri-
grid. Snam also intends to spend €150mn on bution networks to increase the use of LNG and
initial projects to convert railway lines to run on hydrogen as transport fuels.
hydrogen, install fuel cells along its networks and While unveiling its strategy, Snam also
launch its first hydrogen distributors. announced plans to become carbon neutral
“Green hydrogen is expected to become by 2040, although the goal only covers Scope
competitive in a few years in various sectors,” 1 and Scope 2 CO2 emissions and not Scope 3
the company said. “The most efficient way to pollutants. The company is targeting a 50% cut
transport green hydrogen is through the gas in its Scope 1 and 2 emissions by 2030, com-
infrastructure.” pared with the level in 2018, up from a previ-
Green hydrogen is produced from water ous aim of 40%.
at electrolysers, powered by renewable energy Snam expects to achieve half of this reduc-
sources such as wind and solar. Snam’s goal is to tion by developing hydrogen-powered turbines
have 5 GW of electrolyser capacity up and run- for compressor stations, while efforts to reduce
ning by 2030. This is in line with another strategy methane emissions should account for the rest.
laid out by Italy’s ministry of economic develop- “The 2020-2024 plan opens a new phase in
ment last week. the history of Snam, in which the climate chal-
While green hydrogen is Italy’s main priority, lenge is ideally positioned to play an important
the ministry’s plan also acknowledges that blue role in the energy transition, with a long-term
hydrogen, produced from fossil fuels with CO2 vision consistent with its purpose and European
from the process captured, also has a role to play objectives,” Snam CEO Marco Alvera said in a
in decarbonisation. statement. “Snam will be one of the first energy
Some 70% of Snam’s infrastructure is already companies to reach carbon neutrality in 2024
hydrogen-ready, the company said, adding it and provide a wide contribution to the decar-
would develop positions upstream and down- bonisation of the system through the develop-
stream of its pipelines as well, both in hydrogen ment of green gases and, in particular, hydrogen.”
and biomethane. It has already entered a number Regarding Scope 3 emissions, Snam said it
of partnerships and agreements with industrial would increase its collaboration with subsidi-
players in these areas. aries and had started joint projects with suppli-
Snam’s other investments over the period will ers in order to lower them. Others in Europe’s
include converting eight compression stations to oil and gas industry such as Norway’s Equinor
run partly on gas and partly on electricity. The and Spain’s Repsol have gone further, including
company earlier this year trialled its first hybrid Scope 3 emissions in their net-zero targets. ™

P14 www. NEWSBASE .com Week 48 03•December•2020