MILAN: Italian gas group Snam has agreed with Abu Dhabi state fund Mubadala to work on projects to develop hydrogen business in the United Arab Emirates (UAE) and elsewhere.

In a joint statement, the companies said they would be carrying out feasibility studies for joint investment in the sector.

Mubadala, which manages a $232 billion investment portfolio, recently set up the Abu Dhabi Hydrogen Alliance, with Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi state holding company ADQ, to build a hydrogen industry for the UAE.

"This signing with Snam is an extension of our joint efforts to develop a hydrogen economy for the UAE, and we are committed to advancing the role hydrogen will play to meet future energy demand globally," Musabbeh Al Kaabi, CEO of UAE Investments at Mubadala said.

Snam, Europe's biggest gas transport group, is investing in green hydrogen and has said 70% of its natural gas grid is made up of "hydrogen ready" pipes.

The company has set up a business unit to scout for new technologies in the sector and has signed a series of deals to use hydrogen in industries like rail and steel.