Saipem and Hera Group’s collaborative CO₂ capture project in Italy has been selected to receive nearly €24m ($25.8m) in funding from the EU Innovation Fund.

Saipem’s Bluenzyme technology will be applied to capture CO₂ emissions at subsidiary Herambiente’s waste-to-energy plant in Ferrara, Italy.

It marks Italy's first industrial-scale CCS application at a facility of its type.

This project is a key part of the Hera Group’s Climate Transition Plan aimed at reducing internal emissions.

The technology will capture CO₂ from the plant's chimneys and store it in depleted natural gas fields, significantly reducing emissions and aiding local decarbonisation efforts.

This project has been selected to receive the funding from the EU Innovation Fund under its fourth call for mid-scale projects.

The EU chose the project for its innovative approach and the potential for replication in other waste-to-energy and hard-to-abate industrial sectors throughout Italy and Europe.

The European Funds will cover a substantial portion of the €53m required for the construction of the CO₂ capture plant, which is expected to become operational by 2028, contingent on changes in the regulatory framework.

Meanwhile, Saipem has updated its financial outlook, confirming plans to resume dividend payments next year following a strong third-quarter performance.

The group reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €340m between July and September.

Projects awarded by Qatar and Saudi Arabia contributed to new contracts totalling €6.4bn in the quarter.

Saipem now expects its 2024 sales to surpass €14bn, an increase from its previous estimated range of €12.7bn to €13.3bn.