Snam inks deal with IVECO to use gas and hydrogen in transport sector

MILAN (Reuters) - Italian gas group Snam <SRG.MI> has signed an agreement with truck maker IVECO and power train manufacturer FPT Industrial to develop gas and hydrogen infrastructure in the transport sector at home and abroad.

Under the agreement, IVECO and FPT, both controlled by CNH Industrial <CNHI.MI>, will work with Snam on natural gas and hydrogen systems for use in light- and heavy-duty commercial vehicles and in local public transport.

The deal follows a series of agreements signed by Snam to use biogas, natural gas and hydrogen in the transport sector, especially in heavy vehicles where electrification is not an easy solution.

IVECO already produces a full range of trucks and buses fueled by natural gas and is developing a hydrogen-fired heavy truck with U.S. partner Nikola <NKLA.O>.

Snam, which makes most of its revenue from gas transport in Italy, has pledged to spend more on new green business lines to help it position itself for the industry-wide transition to cleaner energy.

(Reporting by Stephen Jewkes; editing by Barbara Lewis)