MILAN (Reuters) – The Italian gas group Snam aims to become carbon neutral by 2040 and will increase spending on preparing its grid for hydrogen and the transition to cleaner energy sources.
Europe’s biggest gas pipeline company said Wednesday that it would invest 7.4 billion euros through 2024, half of which would prepare its infrastructure to receive hydrogen.
It said the net zero-carbon target does not include emissions beyond its control, but works with suppliers to address the so-called Scope 3 emissions that are generated by the provision and use of its products.
He said his party aimed to reduce direct and indirect carbon emissions by 50% by 2030 from the previous target of 40%.
“Snam will be one of the first energy companies to achieve carbon neutrality by 2040 and make a broad contribution to system decarbonization through developing green gases and, in particular, hydrogen,” said Snam CEO Marco Alvera.
The company, which is also interested in getting involved in the water sector, said it aspires to fully transport decarbonized gas on its network by 2050 to make Italy a European hydrogen hub.
Snam, which derives most of its revenue from gas transportation in Italy, wants to expand the use of hydrogen in pipelines and has achieved a 10% hydrogen mix in a pilot study.
Net profit in the 2020-2024 period is expected to grow 2.5% per year while core income will increase by an average of 3.3%, the company said, emphasizing dividend growth of 5% per year until 2022.
Reporting by Stephen Jewkes; editing by Agnieszka Flak and Barbara Lewis