Italy's Saipem sees business opportunities in green ammonia
7/26/2024 12:00:00 PM
Italian energy contractor Saipem, which has traditionally focused on oil and gas contracts, sees business opportunities arising in low-carbon areas including green ammonia and offshore wind, its CEO said on Thursday. Speaking with journalists the day after releasing first-half results, Saipem's Alessandro Puliti said the group had been recently awarded a 250-MM euro ($271-MM) project to build a large-scale green ammonia storage tank in Northern Europe.
The tank will be part of a energy import terminal where the ammonia will be turned into green hydrogen, he said, adding Saipem expected similar contracts to emerge as heavy-polluting industries focus on decarbonize their activities.
"This storage tank contract is very important for us because it is a way to enter a business that we expect will develop the most among the activities related to green hydrogen," Puliti said.
Europe is attempting to kick start the production and import of renewable hydrogen - a fuel manufactured using renewable electricity - which countries are betting on to cut fossil fuel use in industrial processes such as steel-making.
Converting green hydrogen into ammonia - passing from a highly flammable gas to a liquid - is the easiest way to transport the renewable fuel, he added. Puliti said the group, which had an order backlog of 30.5 B euros at end-June, was also eager to enter in offshore wind projects in Italy, an area where the Mediterranean country has been proceeding very slowly so far compared with Nordics.
"We are ready to work on offshore wind projects in Italy starting from now ... what we lack to start? Developers and contracts," Puliti said. The Italian group confirmed its 2024 guidance on Wednesday after reporting a 36% rise in adjusted core profit to 297 million euros in the second quarter compared with the same period of last year.
Puliti said the group was focused on delivering on its pledge to return to dividend in 2025.
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