EIB Grants €264 Million to Snam for Boosting Biomethane Infrastructure in Italy

In a major push to accelerate Italy’s energy transition and bolster domestic energy security, the European Investment Bank (EIB) has approved a €264 million loan to Snam, one of Europe’s leading energy infrastructure companies. This strategic financing package is geared towards supporting the integration of biomethane production plants into Italy’s national gas network—fostering a more sustainable, diversified, and resilient energy system.

The first tranche of €140 million of the loan was formally signed at a ceremony attended by EIB Vice-President Gelsomina Vigliotti and Snam CEO Agostino Scornajenchi. The project is part of a larger effort aligned with the European Union’s REPowerEU strategy and Italy’s National Recovery and Resilience Plan (NRRP), both of which prioritize energy autonomy and decarbonization.

A Strategic Leap Toward Renewable Energy Integration

The funding will be used to build 240 kilometres of new gas pipelines designed to connect biomethane plants—facilities that produce gas from organic and renewable waste sources—to the national gas transmission infrastructure. Once operational, the new pipelines will be capable of transporting up to 12,000 GWh of biomethane annually, equivalent to around 1.13 billion cubic metres of gas.

This development is a significant contribution to Italy’s goal of producing 5 billion cubic metres of biomethane per year by 2030, a target outlined in its NRRP and critical to reducing reliance on imported fossil fuels.

Supporting EU’s REPowerEU and Green Goals

The EIB’s loan is fully compliant with the EU Taxonomy for sustainable investment and serves multiple European policy goals. Under the REPowerEU initiative, launched in the wake of the 2022 energy crisis, the EU aims to diversify energy sources, boost renewable energy deployment, and cut dependency on Russian fossil fuels.

“This operation demonstrates again the EIB’s key role in supporting energy security and the green transition in Italy,” said EIB Vice-President Gelsomina Vigliotti. “It will help reduce dependence on imported fossil fuels and promote national and European strategic autonomy.”

The Role of Biomethane in Italy’s Energy Transition

Biomethane—produced from the anaerobic digestion of organic waste—is regarded as a low-carbon, renewable alternative to natural gas. It can be directly injected into the existing gas grid, making it a highly efficient and scalable solution for decarbonizing heating, industry, and transport.

“Biomethane is a strategic resource alongside natural gas in the energy integration process,” noted Snam CEO Agostino Scornajenchi. “This loan helps us enhance a flexible and efficient transmission system that supports source diversification and system competitiveness.”

Snam’s plans involve connecting a growing number of small- and mid-scale biomethane plants to the grid. The infrastructure will cater to a diverse range of producers, including agricultural cooperatives, waste management facilities, and food processors, helping to generate circular economic benefits while also contributing to climate targets.

Broader Impact: Economic, Environmental, and Strategic

This project is expected to:

• Stimulate local economies through construction, operations, and feedstock supply chains.

• Enhance Italy’s energy independence, reducing exposure to volatile international gas markets.

• Support the EU’s 2030 climate targets, by displacing carbon-intensive fossil fuels with renewable gas.

• Accelerate the digitalization and modernization of Italy’s gas infrastructure with smart metering and advanced grid management.

The financing also complements Snam’s long-term strategy to transform Italy’s gas grid into a platform capable of transporting renewable gases such as hydrogen, alongside biomethane, positioning the company as a leader in Europe’s green energy landscape.

Looking Ahead

As Europe continues to redefine its energy priorities in response to climate and geopolitical pressures, investments like these highlight the pivotal role of infrastructure in the clean energy transition. The EIB’s support ensures that public and private sector actors can jointly mobilize capital to deliver climate-resilient and future-ready energy systems.

The project’s successful rollout will serve as a blueprint for other EU nations, aiming to unlock the full potential of renewable gas and build an energy-secure and climate-neutral Europe.