Investments and network development

Snam’s new capex plan envisages an increase in investments of almost € 700 mln compared to the €7.4 bn of the 2020-2024 plan, bringing them to €8.1 billion in the 2021-2025 period. The Plan includes the maintenance, upgrade and development of its infrastructure, net zero investments and the acceleration of the energy transition. Investments aligned to the European taxonomy account for 47% of the total (an increase compared to 40% in the previous plan). Regulated activities are substantially in line with the previous plan even though with a different mix.

Energy networks in Italy (€ 5.6 bn)

Replacements to upgrade the network with "hydrogen ready" pipelines continue, with 1,300 km coming on line. Investments are also planned to achieve the net zero target, including the dual-fuel conversion of the first three compression stations. Other investments include the start of the construction of the virtual pipeline in Sardinia, the first portions of the network as well as ordinary maintenance activity. The investment plan also includes new connections linked to the energy transition.

Energy storage (€ 1.2 bn)

Investments show a significant increase versus € 900 mln in previous Plan thanks to the conversion of three dual fuel compression stations (coherently with emissions reduction targets), the construction and upgrading of gas storage wells, the replacement and upgrading of certain components, and maintenance activities. These investments will support the growing need for flexibility which will increase with the further development of renewables. Furthermore, these investments will enable the prospect to store hydrogen.

Green energy projects (€ 1.3 bn)

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 integrated solutions 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 (net of about 200 mln in possible grants, of which 100 mln in hydrogen and 100 mln in biomethane), an increase compared with € 700 mln in the previous Plan. New businesses are expected to contribute to Group's annual EBITDA for € 150 mln in 2025, through projects that, once completed, will generate around € 180 mln in EBITDA.