Adani Group announces strategic collaboration with Snam, Europe’s leading gas infrastructure company on energy mix transition
Ahmedabad, 7 November 2020: The Adani Group added a new chapter to its legacy of nation-building by announcing strategic collaboration with Italy-based Snam, Europe’s leading gas infrastructure company. The collaboration, an integral part of the virtual summit between Indian Prime Minister, Narendra Modi and Italian Prime Minister, Giuseppe Conte, would envisage exploration of the hydrogen value chain in India and global markets, as well as the development of biogas, biomethane, and low-carbon mobility.
Adani Group Chairman, Mr. Gautam Adani, commented, “In line with India’s target of 450 GW of renewable energy by 2030, the Adani Group has embarked on one of world’s most ambitious carbon offset programs. Given the commitment of our Government to sustainability and the sheer scale of need, India will be one of the most attractive transition markets for low carbon electricity technologies. We intend to play an essential role in this energy mix transition. Our recent ranking as the world’s largest solar power company is a validation of our intent and we will continue to diversify our energy portfolio.
Therefore, our multi-pronged partnership with Snam has several strategic nuances. Given India’s urban and rural differences, biogas and biomethane cannot be considered in isolation from the nation’s broader energy system needs. The ability to simultaneously decentralize and decarbonize energy production and be able to provide clean energy and cooking fuel to rural India is a national need that we must fulfill and technologies that can help economically produce biogas and biomethane are optimal choices. At the same time, the ability to leverage scale and technology to produce 100% green hydrogen using renewable energy is the most economical and cleanest way to serve a concentrated set of end users and industrial clusters. In this context, the combination of Adani’s ability to provide the largest national energy platform and Snam’s broad technology expertise can be pivotal in helping India accelerate its sustainability journey”.
Snam CEO Marco Alverà commented: “India will have a key role in reaching the global climate goals, and Snam aims to contribute to this process with its know-how and its realization capacity. The partnership with a significant group like Adani, undertaken at both an Indian and global level, goes in this direction: together we want to develop joint-projects in energy transition, from biomethane to hydrogen, in order to enable the decarbonization of India and other countries, and create new development opportunities”.
As part of the strategic partnership, Adani Group and Snam intend to explore several opportunities in the energy space, where each Group brings complementary capabilities to the table. Both Adani Group and Snam have a strong interest in exploring the promise of green hydrogen. While Snam has been a strong proponent of hydrogen adoption in Europe, green hydrogen is a natural extension to the Adani Group’s ambitious renewable portfolio.
Further, a non-binding agreement has been signed between Snam and Adani Gas Limited [a joint venture company of Adani Group and Total of France (formerly known as Total SA)] to create a joint venture for setting-up a CNG compressors manufacturing facility in India. This would help in promoting the development of refueling infrastructure for sustainable mobility and fostering the use of natural gas, as envisioned by the Government of India.
About Adani Group:
Adani Group is a diversified organization in India with a combined market cap of over USD 30 billion, comprising 6 publicly traded companies. It has created world class transport and utility infrastructure portfolios across India. Adani Group is headquartered in Ahmedabad, in the state of Gujarat, India. Over the years, Adani Group has positioned itself to be the market leader in its transport logistics and energy utility portfolio businesses focusing on large scale infrastructure development in India with O&M practices benchmarked to global standards. With four IG rated businesses it is the only Infrastructure Investment Grade issuer in India.
Adani owes its success and leadership position to its core philosophy of ‘Nation Building’ driven by ‘Growth with Goodness’ – a guiding principle for sustainable growth. Adani is committed to increase its ESG footprint by realigning its businesses with emphasis on climate protection and increasing community outreach through its CSR program based on the principles of sustainability, diversity and shared values.
About Snam:
Snam is one of the world’s leading energy infrastructure operators and one of the largest Italian listed companies in terms of market capitalization. Through its international subsidiaries, it also operates in Albania, Austria, China, France, Greece, UAE and UK. The Company has the largest natural gas transmission network and storage capacity among European peers and is also one of the main operators in regasification. As part of a €6.5 billion plan to 2023, Snam invests €1.4 billion in the SnamTec project, focused on innovation and new energy transition businesses such as sustainable mobility, bio methane and energy efficiency. Snam also aims to enable and promote the development of hydrogen to foster decarbonisation in the energy sector and industries. Snam’s business model is based on sustainable growth, transparency, the promotion of talent and diversity and the social development of local areas through the initiatives of Fondazione Snam.
