Italian gas infrastructure company Snam has bought a stake in carbon capture and storage (CCS) and clean hydrogen project developer Storegga as part of a £51.3mn ($62.8mn) third-round fundraise by the UK-based company.

The size of Snam’s investment was not disclosed. Storegga also secured additional funding from existing shareholders Singaporean sovereign wealth fund GIC, Japanese conglomerate Mitsui, global investment manager M&G Investments and financial services firm Macquarie Group.

“It is terrific to add Snam to this shareholder group. They are a leader in the energy transition, with specialist experience in crucial areas such as gas transportation and hydrogen that support our mission,” says Nick Cooper, CEO of Storegga.

“International investment capital is searching for viable energy transition projects” Cooper, Storegga

Snam did not comment on the deal. The Italian company has been piloting low-level blending of hydrogen into its pipeline network since 2020 and is also working on the development of hydrogen storage.

In November last year, it signed a memorandum of understanding with Shell to cooperate on hydrogen and other aspects of the energy transition.

Storegga has four projects spread across the UK, the US and Norway, and is in discussions for further development around the world. It recently launched a green hydrogen project in Scotland with Scottish Power and three of Scotland’s major distilleries—Glenmorangie, Whyte & Mackay and Diageo.

Storegga is also the lead developer of the Acorn CCS and hydrogen project in Aberdeen, a key element of the Scottish low-carbon cluster. In addition, it is developing Europe’s first direct-air-capture plant alongside Acorn.

“International investment capital is searching for viable energy transition projects,” says Cooper.

“Storegga’s ability to identify high-quality decarbonisation projects, engage with important influencers such as local governments and communities, and connect with development partners will be accelerated by this further investor support.”

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Author: Stuart Penson