CDP, Eni and Snam sign decarbonisation agreement

The agreement, signed by the Chief Executive Officers of CDP (Fabrizio Palermo), Eni (Claudio Descalzi), and Snam (Marco Alverà), provides that the three companies can jointly carry out integrated projects along the entire value chain in key sectors for the energy transition, such as hydrogen, circular economy (including the use of biomethane), and sustainable mobility. In particular, Eni and Snam will contribute their complementary technical and industrial skills in the upstream, downstream and midstream sectors respectively, and CDP its financial skills and its expertise in managing relations with the institutions involved in the initiatives.

The Letter of Intent is part of a broader commitment of CDP, Eni and Snam to support the achievement of the target of 55% reduction in CO₂ emissions by 2030 – established by the EU – and implementing the European and national hydrogen and circular economy strategies.

Specifically, the three companies, in accordance with the applicable regulations (primarily the unbundling regulation), will promote possible joint initiatives, including partnerships, aimed at developing the production, transportation and marketing of green hydrogen. The co-operation will also involve the production and use of hydrogen in rail transport, leveraging Eni’s expertise in the field of electricity and renewable energy production and Snam’s expertise in infrastructure and electrolysers, as well as in storage and logistics solutions.

More generally, as far as sustainable mobility is concerned, the parties will collaborate to create multifunctional CNG, LNG, and hydrogen refuelling stations, and develop the necessary infrastructure to guarantee the supply of LNG throughout the country for land and sea transportation.

The three companies will also cooperate on the decarbonisation of industrial sectors in which it is more difficult to reduce CO₂ emissions, such as refineries, by developing the potential of carbon capture and storage (CCS) to promote the production of blue hydrogen in the transition phase and progressively through to green hydrogen. The collaboration will also involve the development of infrastructure and research and development activities for the storage and transportation of hydrogen and CO₂.

This agreement will be developed through further binding agreements that the parties will establish in line with the applicable regulations, including where transactions between related parties and unbundling are concerned.

Read the article online at: https://www.energyglobal.com/special-reports/04012021/cdp-eni-and-snam-sign-decarbonisation-agreement/