Italian gas grid operator, Snam, officially launched a market test on Monday to assess hydrogen demand in Italy and to gather expressions of interest for carbon dioxide (CO2) transport and storage. These initiatives are integral components of Snam's broader efforts to support Italy's ongoing energy transition, as stated in a company release.
Carbon capture and storage (CCS) technology, which forms a crucial part of these initiatives, is designed to extract CO2 from industrial processes or capture it at emission points, subsequently storing it underground. The International Energy Agency (IEA) identifies CCS as pivotal in achieving global climate goals. However, critics raise concerns about potential prolongation of fossil fuel usage and question its commercial viability.
In collaboration with Italian energy group Eni, Snam had previously unveiled a project last year for a carbon capture and storage hub offshore Ravenna, aimed at decarbonizing high-emission industrial activities. Additionally, Snam is actively supporting the SoutH2 Corridor project, which entails the construction of a pipeline to transport green hydrogen from North Africa to Italy, Austria, and Germany.
Snam's market testing, conducted in partnership with the Italian employers' lobby Confindustria, will focus on identifying and exploring strategic markets associated with manufacturing and energy-intensive sectors. The testing period will conclude on April 5, with results expected to be shared in aggregate form by the third quarter of 2024.
A joint study by think-tank The European House – Ambrosetti and Snam-Eni estimates that the CCS hub could store approximately 300 million metric tons of CO2 by 2050. This initiative is anticipated to support industrial sectors generating 62.5 billion euros ($67.21 billion) of value added, sustaining around 1.27 million jobs in Italy.
