Gautam Adani-led Adani Group announced on Friday that it has entered into a strategic collaboration with Italy-based Snam, Europe’s leading gas infrastructure company, to explore the hydrogen value chain in India and global markets, as well as the development of biogas, biomethane, and low-carbon mobility.
The collaboration was part of the virtual summit between Indian Prime Minister, Narendra Modi and Italian Prime Minister, Giuseppe Conte held on Friday. Further, a non-binding agreement has been signed between Snam and Adani Gas [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 refuelling infrastructure for sustainable mobility and fostering the use of natural gas, as envisioned by the Government of India.
Adani Group Chairman, Gautam Adani, said, “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."
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. "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 decarbonise 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," Adani said
He added that the ability to leverage scale and technology to produce 100 per cent 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," he said.
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. Snam chief executive officer Marco Alverà said, “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 realisation 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”.