February 05, 2024 [Reuters]- Snam (SRG.MI), opens new tab is officially launching a market test for hydrogen demand in Italy and a collection of expressions of interest for carbon dioxide (CO2) transport and storage, the gas grid operator said on Monday.

The two initiatives are part of Snam’s broader activities to support Italy’s energy transition, the company said in a statement.

CCS technology removes from the atmosphere C02 produced by industrial processes or captures it at the point of emission and stores it underground.

The International Energy Agency (IEA) says it can play a vital role in achieving global climate goals. However, critics say it risks prolonging the use of fossil fuels and question whether it is commercially viable.

Snam and Italian energy group Eni announced a project last year to set up a carbon capture and storage hub offshore Ravenna to help decarbonise high-emitting industrial activities.

Snam is also supporting an plan to build a pipeline to carry green hydrogen from North Africa to Italy, Austria and Germany dubbed the SoutH2 Corridor.

The gas grid operator will carry out market testing in cooperation with the Italian employers’ lobby Confindustria to identify and explore two strategic markets related to manufacturing and energy-intensive sectors.

The activities will end on April 5 and the results will be shared in aggregate form by the third quarter of 2024.

A study compiled by think-tank The European House – Ambrosetti and the two groups estimates that the Eni-Snam CCS hub will be able to store around 300 million metric tons of CO2 by 2050, supporting industrial sectors that together generate 62.5 billion euros ($67.21 billion) of value added with about 1.27 million jobs in Italy.

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data