EU grants €264 million for constructing biomethane pipelines in Italy

The European Investment Bank (EIB) has given its approval to a loan of up to €264m for energy firm Snam, paving the way for the integration of biomethane production plants into Italy's gas transmission network.

The loan, in line with the objectives of REPowerEU and the National Recovery and Resilience Plan (NRRP), aims to reduce Italy's dependence on imported fossil fuels and promote strategic autonomy. The project is expected to contribute significantly to Italy's transition towards a more sustainable and less dependent energy system.

The funds will be used for the construction of 240km of new pipelines. These pipelines will transport up to 1.13 billion cubic metres (cbm) of biomethane per year, an amount equivalent to the annual energy consumption of approximately 2.5 million Italian households. The energy equivalent of the transported biomethane is 12,000 GWh.

Gelsomina Vigliotti, Vice-President of EIB, stated that the loan will help achieve these objectives. The project supports the target set under the NRRP to produce 5 billion cbm of biomethane per year by 2030.

Notably, the management behind Snam that supports biomethane production plans includes Axpo Group. After entering the Italian market in September 2024, Axpo agreed in December 2024 to purchase biomethane projects in Sicily producing about 45 GWh of renewable energy annually. Operations are set to begin in the second half of 2026, with construction starting in early 2025.

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In conclusion, the EIB's approval of the loan marks a significant step forward in Italy's transition towards a more sustainable energy future. The project, led by Snam with the support of Axpo Group, will contribute to reducing Italy's dependence on imported fossil fuels and promote strategic autonomy, in line with the objectives of REPowerEU and the NRRP.