SMALL SCALE LNG The first project in Italy to promote a sustainable transport Refueling of ships, road transport and access to energy in remote places We want to make liquefied natural gas accessible for the Italian market, reducing emissions in the maritime and heavy road transport sectors and allowing to methanise areas of our country not yet connected to the grid. This is why we are developing the first integrated supply chain in Italy for the transport on small-sized LNG ships for the liquefied natural gas storage and distribution (Small Scale GNL). The first stage of this process was starting in 2019 the building of the first coastal LNG deposit in mainland Italy in the Port of Ravenna and of the first LNG ship of 30,000 cubic meters. In addition to this, an authorized deposit in Oristano and two other coastal storage projects under development in Southern Italy. What is Small Scale LNG Liquefied Natural Gas (LNG) is obtained by cooling natural gas to -160° C, after having separated it from water and other substances that would freeze at such temperatures. After this transformation natural gas in liquid state occupies volumes 600 times lower than in gaseous state and can therefore be easily transported along sea routes with great flexibility. Once it has reached its destination place, liquefied natural gas can be immediately used as a fuel for maritime transport or unloaded and stored in small-scale plants, to then be distributed to fuel filling stations for powering heavy vehicles or to industrial plants and small gas distribution networks not connected to the gas pipeline grid. EMISSIONS REDUCTION WITH LNG CO2 NOx SOx PM Maritime transport 25% 90% ~100% ~100% Road transport 20% 60% ~100% ~100% CO2: Carbon dioxide / NOx: Nitrogen oxides / SOx: Sulfur oxides / PM: Particulate matter Energy that makes transport more sustainable The development of Small Scale LNG is supported by a positive institutional strategic context both globally and nationally. To achieve the long-term goal to reduce emissions set by COP 21 in Paris, G20 countries confirmed the role of natural gas as a source for energy transition. Using LNG instead of traditional fuels allows indeed a significant CO2 reduction and an almost total drop of other pollutants emissions into the atmosphere. Institutions, at international, european and national level, are promoting this energy source through recommendations such as those expressed by the International Maritime Organization or regulations such as the Directive on Alternative Fuels Infrastructure (DAFI) issued by EU and adopted by Italian Parliament. The Ravenna project Thanks to the agreements signed with Gruppo PIR and Knutsen in 2019, we started to build the first integrated small scale LNG logistics chain in Italy, by realizing a 20,000 cubic meter coastal depot in Ravenna and a small-sized LNG ship in our exclusive use in order to transfer LNG from large regasification terminals to coastal depots. PRESS RELEASE The coastal deposit in Ravenna The Ravenna depot will be built by Depositi Italiani GNL, the newco created with Gruppo PIR in order to make LNG accessible in Italy. The depot will be operational already in 2021. PRESS RELEASE The LNG transport ship The agreement stipulated with Knutsen OAS Shipping provides for the exclusive use of a 30,000 cubic meter LNG ship. The ship will supply LNG coastal depots carrying it from terminals across Europe. Project stats The project launched by Edison is the first example in Italy of an integrated plan to supply, store and sale liquefied natural gas, through small-scale plants. The Ravenna depot will be able to supply 12,000 trucks, 4 cruise ships or 40 ferries in one year. Asset 18 1 million cubic meters The amount of LNG the depot could handle in 1 year 6 million CO2 tons avoidable in 25 years Asset 17 € 100 million The Ravenna depot investment Plans for other depots Edison is developing additional coastal depots to complete the integrated LNG logistics chain. A depot in the Oristano industrial port is authorized, two others are under development in Naples and Brindisi: the first was recognized by European Commission as deserving to be financed by the Connecting Europe Facilities european funds (CEF) as part of the European Union's support for integrated sustainable mobility projects.