Growth Drivers

Growth Drivers

Snam pursues a sustainable model of growth, in order to create value through these main strategic drivers: long term RAB growth; green energy projects; international associates; solid financial structure and sustainable finance; and enhanced targets on emissions reduction and growing committment to ESG.

Energy networks: replacement cycle ramp up (€5.6 bn)

  • Key development activities:
    - Sardinia project
    - 3 dual fuel compression stations
  • Replacement: about 1.300 km of transport pipelines replaced during the plan period (Ravenna – Chieti; Rimini - San Sepolcro; S.Salvo – Biccari)
  • New connections: 205 CNG and 75 biomethane connections to the grid; 115 other connections to the grid.

Energy storage: increase performance and refurbish assets (€1.2 bn)

  • Key development activities:
    - 3 dual fuel storage stations
    - new/refurbished CH4/H2 wells (storage flexibility and peak volume increase)
  • Replacement: Upgrading gas processing and monitoring equipment at Fiume Treste, Sabbioncello, Settala, Ripalta; minerbio and Sergnano plants
  • Maintenance to maintain safety standards and comply with regulations.

Long term RAB growth

  • Strategic role of gas infrastructure supports the longevity of the assets
  • Continued investment in the integrity and resilience of the assets; 10,000km of fully amortised network remaining in 2030
  • Investment cycle on H2 ready storage renovation
  • Repurposing of a portion of the network to transport H2
  • Enhanced support to 2040 RAB growth


In recent years, Snam has created a broad and diversified platform of activities (energy efficiency, biomethane production and infrastructure, sustainable mobility, hydrogen along the entire value chain) to offer aintegrated solution along the entire green gases value chain. For the 2021-2025 period, Snam’s investments in energy transition activities will amount to approximately €1.3 bn, an increased compared with €700 mln in the previous plan, with an annual contribution to EBITDA of € 150 million in 2025, through projects that, once completed, will generate around €180 mln in EBITDA.

  • Biomethane: Develop biomethane capacity and complete CNG-LCNG-SSNLG footprint
  • Energy efficiency: pipeline of projects for residential, industrial clients and public administration
  • Hydrogen: mobility, feedstock, thermal.

Biomethane (Snam4Environment, Snam4Mobility)

Investments of €850 mln by 2025 are planned (net of 100 million euros for possible grants), 100 million euros of which in sustainable mobility infrastructure. In recent years, Snam has created a leading platform in the circular economy and infrastructure for the production of biomethane (from organic waste, agricultural and agricultural-industrial waste and livestock effluents) to contribute to the achievement of decarbonisation targets. The construction of plants with an installed capacity of about 120MW, almost twice as much as the capacity targeted in the previous Plan, also by leveraging on opportunities provided by Italy’s Resilience and Recovery Plan (PNRR). These investments are expected to fully contribute to the company’s results after 2025. With regards to the previous Plan, a slower ramp up is envisaged as a consequence of a number of factors: among these a delay in the permitting attributable to the pandemic as well as expectations on the new biomethane Decree filed to the EU Commission. In biomethane and natural gas mobility for light and heavy vehicles over the plan horizon, the development of L/CNG and bioL/CNG stations will be completed as well as infrastructure projects to fuel the distribution network with LNG. 

Energy efficiency (Renovit)

Investments of €200 mln are planned to 2025, with visibility on cash flows in the long term. In just three years, Snam has become one of the leading Italian operators in energy efficiency services for residential, industrial and public administration sectors. Its subsidiary Renovit (60% owned by Snam), active in the sector, intends to continue its growth path organically and through acquisitions. During the course of this year, CDP Equity entered in the share capital of the company with a 30% stake to contribute to the development in the public administration as well as to the next step of the company. The company has a solid commercial pipeline and is ready to seize further opportunities arising from national programmes to stimulate the sector.

Hydrogen (BU H2)

In the Hydrogen Business Unit about €250 mln of investments are planned by 2025 (net of 100 mln of possible grants) to 2025 mostly to kick-off in 2024. Over the past two years, Snam has set up a Business Unit dedicated to hydrogen, with the aim of being at the forefront of a sector with great prospects. The areas in which the plan's investments will be concentrated are mobility, in collaboration with Snam4Mobility (trains, refuelling stations for light and heavy vehicles, airports) and the industrial sectors (thermal, feedstock, fuel cells) and R&D and venture capital initiatives. The plan includes projects for which Snam submitted request for financing within existing grants (IPCEI, Innovation Fund, Horizon 2020). 


Snam has further strengthened its position as a leader in energy infrastructure on an international level over the last six years, with a diversified portfolio of assets and a consolidated track record of partnerships in different countries with industrial and financial players.


International footprint

More about international strategy

Solid financial structure

  • Strong liquidity profile with undrawn committed lines covering 3 years of bond maturities
  • Financial structure defined via an Asset and Liability Management model: ~3/4 fix rate; >5Y M/LT maturity
  • Cost of debt expected flat over plan horizon at ca. 1.1% (10 bps lower than previous plan)
  • Fully committed to current credit rating metrics
  • Upwards revision by Fitch of debt capacity Guidelines for EU Energy Networks given unprecedented investments to accommodate green gases and hydrogen growth

Continuous growth in sustainable finance

    • Ambition to increase the weight of sustainable finance from current 60% (around 11 billion euros), achieved three years ahead of target, to over 80% of the funding available over the plan period, through the issuance of new sustainable bonds;
    • committed to ensuring that all future issuances are ESG-linked
    • Snam has so far issued 4 Transition Bonds and a Climate Action Bond for overall €2.85 bn, helping to set the rules for bond issuance aimed at financing investments in the area of environmental sustainability
    • Snam has published the new Sustainable Finance Framework assessed by a second party opinion provider, ISS ESG under which the company may issue both instruments to finance specific projects (Taxonomy-aligned Use of Proceeds issued by the EU Commission) and general corporate purpose instruments, linked to sustainability indicators (KPIs) for the issuance of so-called Sustainability-Linked bonds

Capital allocation policy

    • Committed to current credit rating metrics and risk profile
    • Accretive returns: risk adjusted returns at least in line with Italian regulated assets
    • Consistent with our ESG strategy
    • Unlocking industrial opportunities
    • Regulated or contractualised business model

Target on Scope1, Scope2 and Scope 3 emissions

After committing, as one of the first in its sector, to achieving the objective of zero net Scope 1 and 2 (direct and indirect energy) CO₂ equivalent emissions by 2040, Snam has set targets for 2030 on indirect Scope 3 emissions (emissions outside the direct control of the company, for Snam mainly attributable to suppliers and associates). Following a series of collaborative projects and initiatives developed in recent years, Snam is committed to reducing emissions of its associate companies (and other small categories such as emissions on generation and transmission of fuels and energy, business trips as well as commuting from staff) by 46% and the emissions (by economic intensity) of its suppliers by 55% versus 2019 levels. Snam is the first EU TSO to set Scope 3 emission reduction targets covering its suppliers. Snam's emissions reduction objectives are in line with the target of limiting global warming to within 1.5° C. Snam has also raised its target for reducing methane emissions from 45% to 55% by 2025 (on a 2015 basis), which is more ambitious than the UNEP (UN Environment Programme) targets (- 45%).

Finally, Snam has defined a new Scope 1 and Scope2 intermediate target of Co2 emissions reduction to 28% by 2025 (benefiting also from the acceleration of methane emissions programme).

Net Zero

Scorecard ESG

Snam has updated its "scorecard" to 2050 on 14 areas with quantitative objectives to provide stakeholders with a holistic view of the commitment and growing sensitivity towards ESG, enabling them to monitor the results. Sustainable Finance is the new area added to the scorecard for which the company gets committed to increase the weight in total funding to 65% in 2022 and over 80% in 2025.

Further efforts are foreseen in all areas by 2025. With regards to the environment, for example, an increase is planned from 24,000 to 73,000 tons of CO2 saved from energy efficiency activities. In social terms, there is an enhanced focus on employees, supply chain, safety and community: for example, through increasing the percentage of women in executive and middle management positions from 25% in 2022 to 27% in 2025, and an increase in accredited social enterprises on the vendor list (from 40% of procurement cost in 2022 to 50% in 2025). As regards governance, it is confirmed that in 2025 at least 40% of the work of the Board of Directors will be dedicated to ESG issues and reputational due diligence will be performed on 100% of third parties. ESG factors represent 20% of the variable component of the management remuneration both in the short and the long-term.

ESG Scorecard




  • Champion in the race to zero
  • Accelerating long term growth selecting the best projects
  • Solid 2021-2025 industrial plan
  • Financial discipline and attractive shareholder returns

Dividend policy confirmed and extended by 1Y 

  • 5% DPS annual growth to 2022 confirmed
  • 2.5% DPS minimum annual growth 2022-25

Shareholders return

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09 March 2022 - 11:26 CET