Italian utility Snam invests in hydrogen

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Italian energy company Snam has agreed to invest €33 million in U.K.-based electrolyzer manufacturer ITM Power Plc.

Through this operation, which was implemented through a £150 million (€165 million) capital increase open to several institutional investors and the company's shareholders, Snam has acquired an unspecified minority stake in ITM Power.

Snam hopes to gain technical skills in the hydrogen sector, as its representatives will be admitted to ITM Power's strategic advisory committee and technology management committee. The partnership between Snam and ITM Power will also enable the two companies to foster synergies for the development of new projects, also through the secondment of Snam resources to ITM Power.

The Italian company is currently planning to build 100 MW of hydrogen projects based on the proton exchange membrane (PEM) technology. “The agreement with one of the main global producers of electrolysers,” said Snam CEO Marco Alverà, “is Snam’s first external investment in the hydrogen sector and stands alongside those we are already advancing to make our infrastructure ready for the transport of this new clean energy carrier.”

Separately, Snam announced it has signed a memorandum of understanding with the Italian railway operator Gruppo FS Italiane for developing pilot projects involving the replacement of fossil fuels with hydrogen. “The companies will experiment with innovative technological solutions related to the production, transport, compression, storage, supply and utilization of hydrogen to contribute to the development of sustainable mobility, also by taking part in joint initiatives potentially object to financing or public tenders,” Snam said in a statement released.

Snam's largest shareholder is Italian holding company CDP Reti Spa, which is a joint venture of government-run Italian investment bank Cassa Depositi e Prestiti (CDP), State Grid Corporation of China and other investors.

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