EIB Supports Snam with €264 Million Loan for Expanding Italy’s Biomethane Energy Infrastructure

EIB Supports Snam with €264 Million Loan for Expanding Italy’s Biomethane Energy Infrastructure

(IN BRIEF) The European Investment Bank (EIB) has approved a €264 million loan to Snam to construct 240 km of new pipelines aimed at integrating biomethane production into Italy’s national gas transmission system. The initial €140 million tranche has been signed, with the project supporting the delivery of 12 000 GWh per year of renewable energy. In alignment with the NRRP and REPowerEU, the initiative will strengthen Italy’s energy resilience and reduce reliance on imported fossil fuels. EIB Vice-President Gelsomina Vigliotti and Snam CEO Agostino Scornajenchi emphasized the project’s importance in advancing the green transition and enhancing national and European energy autonomy.

(PRESS RELEASE) LUXEMBOURG, 28-Jul-2025 — /EuropaWire/ — The European Investment Bank (EIB) has greenlit a loan of up to €264 million to Italian energy infrastructure operator Snam to support the development of new infrastructure that will integrate biomethane production facilities into Italy’s gas transmission network. This strategic initiative aligns with Italy’s National Recovery and Resilience Plan (NRRP) and the European Union’s REPowerEU strategy, both of which target energy diversification and a reduction in carbon emissions.

The first tranche of the financing agreement, worth €140 million, was formally signed today in the presence of EIB Vice-President Gelsomina Vigliotti and Snam CEO Agostino Scornajenchi. The loan will enable the construction of approximately 240 kilometers of gas pipelines designed to connect renewable biomethane plants directly to the national grid.

Once completed, the infrastructure will be capable of transmitting up to 12 000 GWh of renewable energy annually, equivalent to 1.13 billion cubic meters of biomethane. This project is expected to make a significant contribution toward Italy’s 2030 goal of producing 5 billion cubic meters of biomethane annually, as outlined in the NRRP.

The investment is fully compliant with the EU taxonomy on sustainable economic activities and directly supports the REPowerEU plan’s mission to enhance the EU’s energy independence by expanding the use of domestically produced low-carbon renewable energy sources.

EIB Vice-President Gelsomina Vigliotti highlighted the importance of this investment: “This operation reaffirms the EIB’s commitment to strengthening Italy’s energy security and supporting its green transition. Our support for Snam will reduce reliance on imported fossil fuels and help foster greater strategic autonomy for both Italy and the European Union.”

Snam CEO Agostino Scornajenchi added, “Biomethane is a crucial renewable energy source in the evolution of our energy system. By integrating it into the national transmission infrastructure, we are laying the foundation for a more flexible, efficient, and resilient energy supply that leverages local resources and strengthens energy security.”

The project not only boosts Italy’s renewable energy capacity but also reinforces the nation’s competitiveness by enabling a more robust and diversified energy network fit for the future.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. In the last five years, the EIB Group has provided more than €58 billion in financing for projects in Italy. All projects financed by the EIB Group are in line with the Paris Climate Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation and adaptation, and a healthier environment. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower.

Snam is a leading European operator in gas infrastructure, focusing on transportation, network exceeding 40,000 km across Italy and abroad; in storage, holding one-sixth of the European Union’s entire storage capacity; and in regasification, where it currently ranks as the third largest European player, managing (or co-managing) an annual capacity of 28 billion cubic meters.. Snam is among the top listed Italian companies by market capitalisation and is committed to continuous growth in sustainable finance. In this context, Snam reaffirms its commitment to achieve carbon neutrality (100%) by 2040 and Net Zero for all emissions, including those of associated companies and suppliers, by 2050.

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SOURCE: European Investment Bank