Italy Pipeline Project to Establish Hydrogen Network for Country

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Italian natural gas pipeline operator Snam has announced plans to convert much of its gas pipeline network to carry hydrogen.

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Repurposing Plans

Late last week, Italian energy company Snam announced plans to repurpose around 60% of its natural gas pipeline network to carry hydrogen. While a final investment decision remains in the future, Snam's announcement comes as part of its broader capital plan for 2026-2030 in which the company plans to invest around 14 billion euro (US$16.2 billion) for the pipeline project as well as other spending on energy efficiency projects, carbon capture and fossil fuel infrastructure.

Snam estimates the repurposing project will weigh in at about 200 million euro (US$232 million), resulting in a 1,900-kilometer (1,180-mile) hydrogen pipeline network in Italy, which the company has termed a "hydrogen backbone."

Upstream & Storage Facilities

Snam envisages the hydrogen pipelines connecting production hubs, storage sites and end users, many of which are already in advanced development.

Dedicated green hydrogen production facilities presently under construction in Italy include multiple plants, such as:

• a 4-megawatt (MW), 683,000-cubic-foot-per-day facility in Sicily
• a 5-MW facility in Tuscany to produce 876,800 cubic feet per day, or around 756 tonnes per year
• a 4-MW plant in the Marshe region to produce 683,000 cubic feet per day
• a 5-MW green hydrogen plant in Trieste to produce 853,000 cubic feet per day, or 736 tonnes per year

Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports. Construction on those projects is underway, while another 20 Italian green hydrogen projects are in various stages of planning and engineering.

On the storage side, at least seven projects are on the books to convert depleted natural gas reservoirs into hydrogen storage facilities. Subscribers to Industrial Info's GMI Terminals Project Database can click here for more details.

Metals & Minerals Industry

Those projects are for production and storage sites, but who will be on the receiving end of this budding network? One easy answer: Italy's steel sector.

The Italian steel industry is a foundation of the country's economy, and Italy's steel production ranks second in the European Union (EU), behind only industrial powerhouse Germany, as well as ranking around 11th globally for overall production, according to SteelMedia Engineering. Italy leads the EU for steel produced from electric arc furnaces.

To that end, the country's Metals & Minerals sector is taking a leading role in incorporating hydrogen into its fuel mix, with multiple projects aimed at installing the furnaces and equipment to incorporate green hydrogen into iron and steel production.

Planned spending is even more significant for projects aiming to produce green hydrogen on-site at steel mills and at least one glass plant. Industrial Info is tracking 18 projects to manufacture green hydrogen at steel, ceramic and glass sites, most of which are in the planning or engineering stage. In the process of wrapping up construction is RINA SpA's green hydrogen production unit at a pilot-scale green steel mill in the Lazio region.

Larger View

While Snam called attention to its pipeline-conversion plans, it has put off a final investment decision on the project until a later date. However, the fact that Snam has already accepted EU funding for the project's early stages suggest it may lean toward a positive final decision.

Snam's Rete Gas Italian Hydrogen Backbone project has been awarded "common interest" status by the EU that will allow for streamlined permitting. The repurposed pipeline would be part of the SoutH2 Corridor, a broad project that aims to connect hydrogen production in North Africa with Italy, Germany and Austria. The project is envisioned as a pipeline network of 3,500 to 4,000 kilometers (2,175 to 2,485 miles), with the European piece representing the bulk of this, consisting of 60-70% repurposed gas pipelines--very much in keeping with Snam's vision.

Last year, Snam received a 24 million-euro (US$27.9 million) subsidy from the EU's Connecting Europe Facility to fund some of the early engineering work on its part of the project. Subscribers to Industrial Info's Pipeline Project Database can click here for more details on Snam's hydrogen-conversion projects.

Key Takeaways

• Pipeline operator Snam has announced plans for a hydrogen pipeline network in Italy that will repurpose approximately 60% of its natural gas pipelines.
• Several green hydrogen production projects are underway or planned for Italy, and the country's steel sector is taking a prominent role in transitioning to hydrogen as a fuel.
• The repurposed pipeline would be part of the SoutH2 Corridor, a broad project that aims to connect hydrogen production in North Africa with Italy, Germany and Austria.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).