Italian energy utility Snam on Friday signed agreements with Indian Oil Corporation (IOCL), Adani Group and Greenko to enter the Indian market, with a focus on natural gas, hydrogen and low-carbon mobility.
The company has signed a memorandum of understanding with IOCL for possible joint initiatives in the natural gas infrastructure value chain, particularly for storage and regasification. It has also signed separate preliminary agreements with the Adani Group and Greenko for jointly exploring and developing the hydrogen value chain in India.
FE had reported in August that Snam planned to set foot in India’s gas infrastructure space, and the company’s CEO had had a discussion with petroleum minister Dharmendra Pradhan regarding collaborations in the areas of liquefied natural gas, gas storage and hydrogen fuel. The company, on Friday, also signed a non-binding agreement with Adani Gas to create a joint venture to set up a manufacturing facility for compressors, which are to be used in gas refuelling stations.
“Thanks to the partnerships with some of India’s leading players, leveraging our know-how and technologies, we have the opportunity to bring a valuable contribution to a country that is strongly committed to the energy transition and which presents many opportunities,” Snam CEO Marco Alvera said on Friday.
With Greenko, Snam aims to collaborate on the study of hydrogen production methods from renewables. Green hydrogen or hydrogen produced from renewable energy has been cited as the next ‘clean energy prize’ in a recent policy brief by The Energy and Resources Institute (Teri). Green hydrogen can be produced through electrolysis, a process wherein electricity generated at renewable energy units is put in water to produce hydrogen and oxygen.
Among the avenues being explored by the government to circumvent the problem and reduce dependence on imported products is the use of hydrogen technology to store electricity that can run vehicles and balance power systems, with such batteries estimated to be cheaper and more efficient than the lithium-ion batteries in use at present. Driven by the transport, industry and power sectors, demand for hydrogen could increase by three to 10 times by 2050, Teri has said.
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