Italy is set to reach 5GW of installed electrolyser capacity by 2030, Italian transmission system operator (TSO) Snam Rete Gas said on Wednesday presenting the company’s strategic plan for the next four years.

Snam’s goal to develop electrolyser capacity is part of the company’s new goal to cut emissions by 50% by 2030, up from a previous target of 40%.

Snam stated it wants to become carbon neutral by 2040 and to achieve that goal is set to invest €7.4bn. This was around €1 billion above the previous year’s plan.

Of these investments, 50% is dedicated to upgrading infrastructure, including replacing and developing new assets. Works should mainly concern pipe replacement and converting eight compression stations into gas/electric hybrid.

According to Snam, more than 70% of the Italian pipes are ready to transport hydrogen and standards have been defined for the purchase of exclusively hydrogen ready components.

CEO Marco Alvera said the company envisions to produce a larger amount of hydrogen in the south of the country exploiting the regional solar potential, and export hydrogen to the north of the country where most of the demand is traditionally located. The opportunity to Italy becoming a hydrogen exporter towards northern of Europe was also mentioned.

The production costs for renewable capacity have been significantly dropping recently and this is set to further speed up the hydrogen technology development in the country in the next few years, Alvera said.