Milan — Energy companies Eni and Snam are joining forces with Italian state-lender CDP to work on energy transition projects aimed at cutting carbon emissions.
The three groups said in a joint statement on Wednesday that they would team up to produce, transport and market green hydrogen as well as to use the gas for rail transport.
Italy is targeting investments of around 10 billion euros ($12.2 billion) in hydrogen by 2030 as part of its strategy to decarbonise the economy as it moves to phase out fossil fuels.
Cassa Depositi e Prestiti (CDP), controlled by the Italian Treasury, is the main shareholder of oil and gas major Eni and gas infrastructure group Snam.
The three groups said they would be working together to roll out hydrogen, natural gas and LNG (liquefied natural gas) refueling stations as well as build infrastructure to supply LNG nationally for transport.
They will also develop Carbon Capture and Storage units (CCUS) to produce hydrogen to cut emissions in sectors that are hard to decarbonise such as refineries.
The deal is part of a broader commitment to help reach European targets for cutting carbon emissions by 55% by 2030.
“Collaboration between companies is essential for achieving national and European decarbonisation objectives,” Snam CEO Marco Alvera said.
Snam, which makes most of its revenue from gas transport in Italy, has pledged to spend more on new green business lines.
Eni, which has pledged to slash its greenhouse gas emissions by 80%, is betting on large-scale CCUS investments to help clean up the gas in its portfolio as oil is wound down after 2025.
(Reporting by Stephen Jewkes; Editing by Maria Pia Quaglia and Alexander Smith)