Italian gas grid operator Snam has announced a significant investment of €14.5bn ($15.72bn) to adapt its infrastructure for the energy transition.
This investment, planned for the period between 2028 and 2032, is aimed at repurposing the existing gas network to accommodate green fuels like hydrogen and CO₂.
The company's inaugural transition plan highlights the technical and economic viability of modifying its gas infrastructure for future green fuels.
This strategic move is in response to concerns raised by environmental advocates regarding the potential for assets to become obsolete due to investments in new liquefied natural gas (LNG) projects.
Snam's transition strategy is informed by long-term energy forecasts that align with the Italian National Energy and Climate Plan for 2024 and European industry standards.
These projections provide a framework for the company's operations up to 2040 and outline a vision extending to 2050, setting a course for achieving net-zero emissions.
Snam said that a thorough risk analysis, considering various energy mix scenarios, has confirmed the strength of its diversified business model.
The assessment suggests that the risk of assets becoming stranded is minimal, with less than 10% of pipelines potentially affected by 2050.
The company's net-zero road map is founded on reducing emissions and minimising biodiversity impact. Snam has set goals to reach carbon neutrality for direct and indirect emissions by 2040 and aims for net zero across all emissions by 2050.
Notably, the company has already achieved a 10% reduction in CO₂ emissions since 2022 and is targeting a 20% reduction by 2024.
Snam added that its commitment to sustainability is further reflected in its financing strategy, with sustainable finance set to constitute 85% of its total funding by 2027.
The company's emission reduction trajectory includes a 25% cut by 2027, 40% by 2030 and 50% by 2032.
Methane emission reduction is also a priority, with a 57.5% decrease already realised in 2023 compared with 2015 levels, and further reductions planned for the coming years.
Snam manages a network spanning approximately 38,000km and boasts significant gas storage and regasification capacities.
Snam CEO Stefano Venier said: “Snam’s first Transition Plan provides a comprehensive set of initiatives, metrics and KPIs designed to support an actionable transition to net zero by 2050.
“As we navigate the challenging journey towards net zero, now is the time to act with a system-wide sustainability road map consistent with a robust and credible pathway towards achieving net-zero emissions and creating a positive impact on nature.
“The increasing integration of sustainable finance will help us reach these ambitious decarbonisation targets.”
