Italy’s Snam SpA, one of Europe’s largest gas pipeline operators, has set a net zero emissions target for 2040 to be achieved with an increased investment in green energy and hydrogen projects. In its 2020 to 2024 strategic plan, this Italian operator will invest €7.4 billion which is €1 billion more, for its energy transition.
Currently, many oil and gas companies are setting net zero targets to achieve Scope 1 and Scope 2 emissions from the production of energy as set out in the Paris accord. Snam SpA aims to halve its Scope 1 and Scope 2 carbon dioxide emissions by 2030 and commits to significantly reduce its Scope 3 emissions, which are derived from end-use.
Snam SpA CEO Marco Alvera, expects to allocate at least half of its investment to hydrogen related projects. In fact the European Union has put hydrogen at the heart of its efforts to significantly reduce greenhouse gases and achieve climate neutrality by 2050. Bloomberg NEF forecasts that hydrogen, made from renewable sources, would replace coal, oil and natural gas in many energy intensive industries including steel and cement, by mid-century. Snam SpA CEO expects to see greater collaboration in Europe’s utility sector in preference to further consolidation.