MOSCOW (MRC) - Energy companies Eni and Snam are joining forces with Italian state-lender CDP to work on energy transition projects aimed at cutting carbon emissions, said Reuters.
The three groups said in a joint statement on Wednesday that they would team up to produce, transport and market green hydrogen as well as to use the gas for rail transport.
Italy is targeting investments of around EUR10 B (USD12.2 B) in hydrogen by 2030 as part of its strategy to decarbonize the economy as it moves to phase out fossil fuels. Cassa Depositi e Prestiti (CDP), controlled by the Italian Treasury, is the main shareholder of oil and gas major Eni and gas infrastructure group Snam.
The three groups said they would be working together to roll out hydrogen, natural gas and LNG (liquefied natural gas) refueling stations as well as build infrastructure to supply LNG nationally for transport. They will also develop carbon capture and storage units (CCUS) to produce hydrogen to cut emissions in sectors that are hard to decarbonize, such as refineries. The deal is part of a broader commitment to help reach European targets for cutting carbon emissions by 55% by 2030.
"Collaboration between companies is essential for achieving national and European decarbonization objectives," Snam CEO Marco Alvera said.
Snam, which makes most of its revenue from gas transport in Italy, has pledged to spend more on new green business lines. Eni, which has pledged to slash its greenhouse gas emissions by 80%, is betting on large-scale CCUS investments to help clean up the gas in its portfolio as oil is wound down after 2025.
Abu Dhabi National Oil Co, the UAE's biggest energy producer, has awarded Italy's Eni and Thailand's PTTEP an exploration concession amid plans to boost oil production capacity by 25% to 5 million b/d by 2030.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
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