The logo of Italian gas group Snam can be seen outside its office in Rome, Italy, June 4, 2020. REUTERS / Guglielmo Mangiapane

MILAN, Nov. 29 (Reuters) – Europe’s largest gas pipeline company Snam (SRG.MI) sees 23 billion euros ($ 26 billion) of investment opportunities over the next nine years as it grows expenses to prepare its network for hydrogen and for the transition to cleaner energy sources.

The company said in its business plan on Monday that the investments would help it grow profits by 6-8% a year from next year to the end of the decade as it seeks to become carbon neutral for its businesses. own products by 2040.

He said he plans to spend around € 3 billion to reuse 2,700 km of grid to transport hydrogen from southern Italy to the north for export to energy-intensive regions like Greece. Germany.

Snam, which derives most of its income from gas transport in Italy, wants to develop the use of hydrogen in its pipelines as economies increasingly seek to wean themselves off gas.

“We will play a key role in a decisive decade for the energy transition, aiming to seize new growth opportunities in Italy and internationally,” said Marco Alvera, CEO of Snam.

Snam agreed on Saturday to buy a stake in the pipelines transporting Algerian gas to Italy, which could pave the way for hydrogen imports from Africa to Europe.

Snam, which manages the bulk of gas storage in Italy, also said it plans to help develop an international green energy storage platform.

Italy is one of the European countries which has urged Brussels to build joint strategic sites to store gas.

Snam, which has pledged to spend 8.1 billion euros over the four years until 2025, confirmed a 5% growth in dividends until 2022 with a minimum growth of 2.5% per year until 2025.

($ 1 = € 0.8857)

Reporting by Stephen Jewkes, editing by Giulia Segreti and David Evans

Our Standards: Thomson Reuters Trust Principles.