Snam, Italy’s leading gas grid operator, is currently reviewing a binding offer for a stake in Eni ‘s carbon capture business.
The CEO of Snam, Stefano Venier, stated on Wednesday that a formal offer could be submitted as early as next month.
Snam and Eni previously collaborated on a joint venture to establish Italy’s first carbon capture and storage (CCS) hub. Snam is now exploring the possibility of integrating its 50% stake in this venture into Eni’s existing CCS unit.
“We are examining the documentation made available in the data room and at this moment the indication we have received is to prepare a binding offer by the end of February… but there is no definite date,” Venier stated.
Eni, a major energy company, announced last year that it was actively engaging in discussions with several potential partners interested in acquiring a stake in its CCS business.
Snam unveiled its ambitious investment plan earlier on Wednesday, outlining a total expenditure of 12.4 billion euros (~$12.9 billion) over the next five years. This investment will be directed towards enhancing its infrastructure and expanding its low-carbon business ventures.
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Of this total, 10.9 billion euros (~$11.35 billion) will be allocated to gas infrastructure upgrades, while 1.5 billion euros (~$1.56 billion) will be dedicated to low-carbon initiatives.
Within this low-carbon portfolio, 0.5 billion euros will specifically support the development of the CCS business.
Snam highlighted the growing interest from energy-intensive companies in Italy for the Ravenna CCS hub, which will facilitate the capture, transportation, and storage of CO2 emissions.
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Moreover, the company noted that French and Greek companies are also actively considering participating in this initiative.
CCS technology plays a crucial role in mitigating climate change by capturing and storing CO2, either from the atmosphere or directly at the source.
While the International Energy Agency (IEA) recognizes the vital role of CCS in achieving global climate goals, some critics express concerns about its potential to prolong the reliance on fossil fuels and question its long-term commercial viability.
