The new corporate structure

IES Biogas is Snam’s technological partner since 2018 for the realisation and upgrading on biomethane plants in the agricultural and waste sectors.

The main changes in the consolidation scope of Snam Group at 31 December 2019, compared with 31 December 2018, consisted of the inclusion of the following companies: (i) Enura S.p.A. (formerly Asset Company 5 S.r.l.), 55% owned by Snam S.p.A., for the construction of the transportation infrastructure in Sardinia; (ii) Snam Gas & Energy Services (Beijing) Co. Ltd., with its headquarters in China, established in April 2019 and wholly-owned by Snam International B.V. to support the development of the gas market in China through the unique expertise of Snam in the industry; (iii) Snam 4 Environment (formerly Asset Company 6 S.r.l.), wholly-owned by Snam S.p.A., established following the acquisition, in November 2019, from Ladurner Ambiente and from AB Invest of 82.63% of Renerwaste S.r.l., one of major companies in Italy in biogas and biomethane infrastructure, with the consequent gaining of control of Renerwaste Lodi S.r.l., Ecoprogetto Milano S.r.l., Ecoprogetto Tortona S.r.l.; (iv) TEA Servizi S.r.l., active in the design, realisation and running of thermohydraulic and electric plants for industrial customers, with a special focus on small and medium-sized businesses, following the acquisition in November 2019 of 100% of the share capital, via the wholly-owned company Asset Company 4 S.r.l..

Except for Enura, subject to consolidation within the “Natural gas transportation” sector, the remaining companies listed above were included in the sector “Corporate and other activities”, not subject to separate reporting pursuant to international accounting standard IFRS 8 “Operating segments”.

Snam and the acquisitions in green businesses

In recent years, Snam has completed investments for the development of new businesses aimed at promoting decarbonisation and the better use of energy, specifically in the biomethane sector (IES Biogas, Renerwaste), sustainable mobility (Cubogas) and energy efficiency (TEP Energy Solution, TEA Servizi).

Biomethane

IES Biogas

In 2019, IES Biogas was committed to the design and construction in Italy of various plants to produce advanced biomethane, supplied with livestock waste, agro-industrial waste and sub-products of agricultural origin and second harvest crops. This development also has a positive effect on the agri-food industry, promoting a sustainable economic model and significantly reducing agriculture emissions.

The waste sector has also become increasingly more strategic: thanks to managerial skills and consolidated know-how, IES Biogas has upgraded the Waste Division engaged in creating two new biomethane plants for motor transport in Mantua and Sicily and in the conversion of other existing plants to biomethane.

Since its establishment in 2008, IES Biogas has constructed over 220 plants, both in Italy and abroad.

Renerwaste S.r.l.

In November 2019, through the subsidiary Snam 4 Environment, Snam completed the acquisition from Ladurner Ambiente and from AB Invest of a stake of 82.63% of Renerwaste S.r.l., one of the largest companies operating in Italy in biogas and biomethane infrastructures, for an outlay at the closing, including the repayment of the shareholders’ loan, of around €46 million. The transaction, entirely funded through equity, includes the possibility of Snam acquiring the remaining 17.37% of the share capital owned by Ecopartner from June 2020. Renerwaste with its three plants located, respectively, in the provinces of Lodi, Milan and Tortona, generates annual revenues of more than €20 million and employs around 50 people.

Sustainable mobility

Cubogas

Operating globally in the production and sale of methane gas compression systems, in 2019 it actively contributed to pursuing Snam’s strategy on sustainable mobility, both in Italy, supplying compressors for the start-up of the new methane refuelling stations for motor transport, and abroad, where it was awarded, among other things, a substantial tender to supply 23 compressors in Greece and another two tenders in France to supply 6 compressors for the RATP public transport vehicles, a Parisian company operating throughout the Île-de-France region.

Cubogas also produces domestic systems, which allow the refuelling of vehicles directly, at home or at work. It involves reasonably small systems that are simple to install, that can be adapted to the domestic or corporate gas or electricity grid and are therefore ideal for refuelling the fleets of companies or small municipalities. In 2019, one of these compressors was installed at the Snam HQ in San Donato Milanese and many more will follow at other premises throughout Italy.

In 2019, Cubogas also made investments aimed at increasing its production capacity, expanding and innovating its range of products as well as improving the quality of the maintenance service provided to its customers.

In addition to the compression of methane for motor transport use, Cubogas also contributes to the development of biomethane, providing its customers with technological solutions to compress the gas produced by the plants and enable them to be introduced into the transportation network. In this context, Cubogas works in harmony with IES Biogas and Snam 4 Environment within Snam’s Energy Transition Business Unit.

Energy efficiency

Tep Energy Solution

An ESCo (Energy Service Company), accredited at Gestore dei Sistemi Energetici S.p.A. (GSE), which is mainly involved with energy requalification and deep renovation operations for apartment buildings and industrial sites for civil and service sector use. These interventions are designed to optimise the energy performance of buildings/facilities with a consequent reduction in energy consumption and the impact on the environment of corporate operations and processes.

TEA Servizi

On 11 November 2019, through the wholly-owned company Asset Company 4 S.r.l., Snam completed the acquisition of 100% of the share capital of TEA Servizi S.r.l. (TEA), Energy Service Company (ESCo) active in the design, construction and running of thermohydraulic and electric plants for industrial customers, with a special focus on small and medium businesses. The initiative allows Snam to integrate its range of services offered to industrial customers, adding the expertise of plant engineering design, running and maintaining the current proposal developed through TEP Energy Solution.