During 2021, an application has been submitted for the authorization for the construction and operation of a new carbon fiber recovery plant to be located in Imola (BO). The construction of the plant - designed as part of an Italian partnership between Curti, University of Bologna and Herambiente - will allow for a new life to be given to carbon fiber waste that to date is almost totally sent to landfills or to energy recovery. The main objective is to recover a high-performance material with a high-tech design solution that maintains the mechanical properties of unaltered fibers and whose demand is growing steadily (+9% annually). This is an initiative that presents considerable sustainability in terms of circular economy and environmental impact (-90% energy consumption with LCA, -70% compared to virgin fiber production). Construction work on the plant will begin by the end of 2022 with start-up expected after about a year.

The goal is the experimentation and subsequent implementation of a series of solutions to respond to the decarbonization needs of Emilia-Romagna region, from production industries to mobility and individual citizens. The agreement will also help boosting the development of renewable energy in Italy, in line with the guidelines outlined by the European Union.
The agreement includes several areas of action, starting with collaboration on power-to-gas technology. Still in the industrial field, the two companies will study the application of hydrogen for thermal uses in most energy-intensive sectors and with processes that are difficult to electrify.
Other options under study include the creation of plants to extract green hydrogen from water using renewable energy generated by Hera Group's waste-toenergy plants, with the aim of contributing to the decarbonization of industrial sectors such as fertilizer production and fuels.
Finally, the letter of intent envisages a possible joint trial of injecting a mixture of natural gas and hydrogen into a portion of Hera's distribution network in EmiliaRomagna, similar to what Snam has already done on its own transmission network. The protagonist of this experimentation will be the Modena gas network

Hera Group and the Consumer Associations of Emilia-Romagna - Federconsumatori, Adiconsum, Lega Consumatori, Udicon, Cittadinanzattiva, and Confconsumatori - have shared how to extend protection to families in dire straits due to rising energy prices.
The Hera Group reaffirms its commitment to support customers with its policy of installment payments; after all, 200,000 were granted to its customers in difficulty with payments already in 2021. Moreover, the multiutility confirms the possibility for its customers to installment in 10 months for winter bills, without the application of interest, with the consequent suspension of disconnection actions and the possibility of having the first installment equal to only one third of the bill. For all customers with multi-service bills, the installment is also extended to other services, such as water service. In addition, for households with bill amounts over 1,000 euros, there is a willingness to consider requests for installment payments of more than 10 months. For special cases, rescheduling of already granted repayment plans will also be considered for customers who have the willingness to honor the debt, albeit deferred over time. All contact channels, through which to obtain installments, have also been strengthened.
Meetings with consumer associations were activated in February 2022 with identification of a "protocol" for the territories of Friuli Venezia Giulia and Veneto, the subject of two separate initiatives.
The agreement on bill installment is also applied in the territories of Marche to Abruzzo, Puglia, and Sicily. In these territories, the local representatives of the National Consumer Associations and the local Associations have been made aware of the agreement and are cooperating in promoting it to their members.

PARTNERSHIP WITH COMPANIES – A DEEPENING

A memorandum has been signed between Hera, Municipality of Ravenna, Ravenna Holding, Start Romagna, and Aess (Agency for Energy and Sustainable Development) to assess economic and technological feasibility of a program to develop a green hydrogen supply chain - production, storage, transport, and use - in the local public transport sector in the municipality of Ravenna. The feasibility analysis involved the construction of a refueling station for buses fueled by hydrogen produced on-site through an renewable-powered electrolysis and compression plant.

In Castelfranco Emilia, experimental activities have been launched to supply gas distribution networks with a hydrogen/methane mixture to explore the possibilities of decarbonizing domestic and urban uses of gas with hydrogen, which has no carbon content. The development is being carried out in close contact with Municipal Administration, Fire Department, and affected utilities (31), in coordination with Snam - which provided technical input to the field test design activities, - and with major companies active in the gas distribution and use chain, whose participation is coordinated by the respective trade association (Anima - Confindustria). Several national entities active in the gas distribution and quality sector also participate in the project. Goal is to carry out a small-scale experience to refine the know-how and methodologies for the management and control of permanent H2/NG mixture inputs in urban distribution networks, and to facilitate a speedy development of ministerial rules and regulations on the transportation and distribution of such mixtures.

Established a joint venture (Biorg) with Inalca, a Cremonini Group company to produce up to 3.7 million cubic meters of biomethane in a plant in Spilamberto (MO) by the end of 2022 to be fed into the SNAM transport network and used in automotive. It will also be possible to generate up to 18 thousand tons of compost thanks to the recovery of waste from the anaerobic digestion process in the composting plant in Nonantola (MO), which can be used as a biofertilizer in agriculture. The construction site for revamping the Spilamberto plant with the inclusion of Biomethane production has been opened at the end of 2021 and it is expected to start feeding biomethane into the grid by 2022.

In 2020, Hera has developed a study with University of Bologna to quantify the impact of climate change on water distribution networks and identify solutions to improve network resilience. The results consist in designing indications regarding e.g., the optimal balance between surface and underground supplies, network connections, and need for additional reserves or alternative supply sources. Thanks to data collected and analyses carried out in collaboration with the University of Bologna and Arpae as well, a first step in the development of the system capable of collecting, visualizing, and analyzing data from heterogeneous sources - surface water, groundwater, and precipitation - in a single environment was carried out in 2021. With particular reference to the monitoring of groundwater sources, the collaboration has made it possible to create an initial monitoring dashboard with the aim of developing predictive algorithms on the state of aquifers. The project will be integrated with other variables, importing signals and development logic of the predictive algorithm on Hera systems.
In 2021, an agreement has been signed between Marche Multiservizi and Polytechnic University of Marche for critical and experimental analysis of aging and wear phenomena of materials and infrastructure used in water networks, with the goal of supporting design, construction and management of new distribution and drinking water systems. In 2022, the second part of the study has been activated, which will involve experimental testing

In recent years, an intense collaboration has been undertaken between Hera company Inrete Distribuzione Energia, Emilia-Romagna Region and Civil Protection Department aimed at allocating some funding to restore emergency situations and to increase synergies between infrastructure managers and public bodies.
Specifically, the Civil Protection Department oversees carrying out a preliminary reconnaissance phase to intercept any problems on the regional territory. Following the collection of reports - which may come from infrastructure managers, municipalities, public agencies and reclamation consortia, -proposed interventions are screened and, if successful, financed. Inrete Distribuzione Energia manages power lines and about two thousand kilometers of gas network in hill/mountainous territory, which is often subject to phenomena of instability. This makes close collaboration with the entities in charge of safeguarding the territory necessary and desirable. In the last three years a total of 22 interventions have been brought to the Region - 19 in gas and 3 in electricity - for potential total approval of 3.9 million euros in funding covered by the Region.

Agreement signed in 2020 with company Eni Rewind for the construction of a technologically advanced industrial waste treatment platform in "Ponticelle" area - adjacent to the petrochemical hub of Ravenna - capable of receiving and pre-treating up to 60 thousand tonnes per year of solid, liquid, and sludge industrial waste, mainly hazardous.
The project has been developed in 2020 and went through the single permit process in October 2021. In 2022, the services conference for the facility's authorization has continued and the preparation and delivery of supplementary documentation is underway.

In October 2020, Hera Group and Maire Tecnimont have signed a strategic agreement between Aliplast and NextChem, a Maire Tecnimont Group company dedicated to development of projects and technologies for energy transition and circular economy. The agreement calls for NextChem to provide the technology, engineering, and EPC services for the construction of a plant that will use its cutting-edge proprietary “MyReplast TM” technology for upcycling plastic waste into high value-added polymer products.
This collaboration will enable the development of a unique plant in Europe. Built on a site owned by the Hera Group, this plant will leverage the innovative MyReplast TM technology developed by NextChem, which enables the production of recycled polymers of high purity and quality capable of achieving high chemical/physical and mechanical performance. The goal is to process post-consumer plastic waste to obtain "tailor-made" recycled products that meet each customer's requirements and highest market quality standards, on the strength of characteristics and properties similar to those of virgin polymers of fossil origin. Once fully operational, the new plant will be capable of expressing polymer production around 30 thousand tons per year. The plant will ensure high safety standards and will have innovative features such as deep process automation and high digitalization in a data analytics perspective, while also allowing maximization of energy efficiency with consequent environmental benefits.
In 2021, the design of the plant has begun, which will lead to the planned commissioning by the end of 2024.

In 2021, the agreement with ENI signed in 2018 has been renewed, under which all waste vegetable oil collected by Hera is processed in contracted plants and transported to ENI’s bio-refinery in Porto Marghera (VE) to be transformed into biodiesel. Eni supplies Hera with this biofuel - about 600 thousand liters/year - which is used to fuel 35 waste compactors in the territories served.
In 2021, the results achieved with the collection service reached 1,173 tons, a further improvement over previous years. During the same year, the flow collected by Group company Marche Multiservizi in the province of Pesaro Urbino has also entered the circuit. Here, 128 tons of waste vegetable oils have been collected in 2021, reaching a total volume of 1,301 tons of oils collected by Hera Group.
In March 2022, the flow of vegetable oil collected in the territories of Padua and Trieste by Group company AcegasApsAmga is also expected to be sent to the ENI’s biorefinery with an estimated annual quantity of about 150 tons.
In 2021, Hera has also activated a first collection flow of vegetable oils from commercial users in the area, such as canteens and restaurants. The first contract for the purchase of vegetable oils produced by catering activities is the one signed with the CAMST catering group, which adhered by involving 62 catering outlets in its chain in the project, making it possible to start the production of and recover more than 20 tons of used vegetable oils. It is expected that the amount collected thanks to the contribution of the commercial circuit in 2021 can be further increased during the year 2022, under various agreements being finalized.

The project launched in 2019 between Herambiente and Coprob - only sugar producer in Italy based in Minerbio (BO) - continues by providing compost from Herambiente's six quality-certified plants in Emilia-Romagna, which will be used in the fertilisation plans of member farms to restore the organic content in soil that is essential for integral fertility. The flows managed during 2021 increased to a total of 8,168 tons marking an improvement of almost double (+98%) compared to the year 2020. The year 2022 will further benefit from the availability - albeit limited - of compost share allowed in organic farming, a requirement obtained by Herambiente with registration at the portal of the Ministry of Agricultural Policy in January 2022, widening the range of interest to Coprob members operating under organic farming.

The partnership with McDonald's - activated in January 2020 with the aim of enhancing the separate collection of waste produced at 30 of the sign's restaurants located in 14 municipalities served in Emilia-Romagna - is still going on.
In the first two years of collaboration, McDonald's and Hera have designed a new waste container. To support McDonald's on the path to environmental sustainability, Hera organized engagement and information events on topics of circular economy and proper waste collection and management methods for the staff responsible of the 30 restaurants involved in the partnership. In turn, this has allowed McDonald's to train all restaurant staff, implementing a "cascade" training path.
The year 2022 will see further sensitization of McDonald's customers and staff on the correct ways to deliver waste, also thanks to strengthening in-store communication actions co-branded with Hera. In addition, the process of punctual measurement of waste produced in the 30 stores will be completed in order to quantify increases in waste collection resulting from the training, information, and awareness-raising actions of McDonald's staff and customers on the correct waste delivery methods envisaged by the partnership

The partnership with Camst is still going on in 2021. It has begun through a 2-year framework agreement in September 2020 to collaborate on circular economy and environmental sustainability projects through innovative Business-to-Community-to-Consumers approaches.
As for sustainable mobility, Hera has activated the collection of used vegetable oils produced at 62 Camst catering outlets located in the provinces of Modena and Bologna, which allowed for the recovery of about 20 tons of oil in 2021. Such oil has been sent to produce biodiesel at the ENI’s biorefinery in Porto Marghera. In this way, Camst contributed to the production of more than 18 tons of biodiesel, saving 63 tons of CO2. In addition, organic waste - collected by Hera and destined for the Group's own plant in Sant'Agata Bolognese - contributes to the production of biomethane. During 2021, Hera measured the production of organic waste in some of Camst's catering outlets identified for the pilot project. These resulted in an estimated annual production of more than 400 tons of organic waste, contributing nearly 33,000 cubic meters of biomethane produced, for an estimated savings of 25 tons of oil equivalent per year and nearly 60 tons of CO2 per year.
In 2022, the collaboration between the parties will also be further strengthened by expanding the collection of used vegetable oil nationwide, increasing the number of premises and regions involved.

In the second half of 2020, an ambitious project to regenerate end-of-life household appliances has been launched together with Dismeco, active in the WEEE recovery sector with a plant located in Marzabotto (BO). The project aims to encourage disposal of used washing machines at separate waste collection centres, to then select the ones in the best condition for maintenance and repair process that can make them suitable for use again.
The project involves collaboration with electrical and electronic equipment manufacturer associations, installer and repairer associations, large-scale retail associations and other interested parties. It will also be able to develop studies and in-depth research to establish whether and under what conditions it is actually possible to think about a new commercialization of washing machines (and of household appliances in general) thus remanufactured. The project will thus be a great opportunity for training and professional preparation and an opportunity for the creation of potential new jobs to support and develop the Bolognese mountains and their communities.
The project has become operational during the last months of 2021 with the activation of the transfer flows from the first 15 ecological stations in the area, to which another 15 stations already identified at the end of 2021 will be added at the beginning of 2022.

Circular economy and sustainability are at the heart of the first Circular economy report drawn up by Hera Group for Fruttagel, leader in the agro-industrial food sector. Hera has put its expertise at the service of Fruttagel supporting it with a multi-service proposal to achieve increasingly high and challenging circularity results along the entire production chain, expanding the range of services already provided and thus being able to count on the benefits of having a single interlocutor.
In 2022, the second Circular Economy Report for Fruttagel has been compiled, which shows: 100% of non-hazardous waste produced being sent for recovery, 21% of water recovered from sewage treatment plant, 980 tons of carbon dioxide emissions avoided due to waste diverted from landfill, and a 40% reduction in energy consumed per cubic meter of wastewater treated as compared to 2019.
The collaboration with Fruttagel is part of a broad protocol named Hera Business Solution (HBS), the multi-service proposal designed for large companies with which Hera Group puts the expertise of its companies at the service of customers to support them in achieving increasingly high and challenging circularity results along the entire supply chain.

In April 2018, a three-year program agreement has been signed between Hera Spa and Emilia-Romagna Region, Arpae, Atersir and Consorzio Bonifica Renana aimed at recovering wastewater discharged from wastewater treatment plant in Bologna with a total reuse potential of 7.5 million cubic meters. Under the agreement, the consortium will be able to take about 2,160 cubic meters per hour i.e., about 40% of the flow treated in the summer period.
Specifically, part of the purified water from the plant is conveyed through a dedicated pipeline to "Savena Abbandonato," letting the corresponding flow coming from the Reno River flow to the "Navile Canal". This is done through a modulated management of surface water flows by the Consorzio della Bonifica Renana, in relation to the demands and degree of drought of the water bodies.
The agreement has been renewed in April 2022 for additional three years. Similar agreements have been developed in the territory of Bologna, Modena, and some facilities in the provinces of Ravenna and Ferrara.

Bologna Airport “Marconi” has joined Hera Group's circular economy partners in June 2021, signing an agreement to implement environmental sustainability initiatives. Over a three-year period, the partnership aims to optimize the choice of materials and resources used within the airport and identify increasingly sustainable management solutions, reducing the amount of waste produced and enhancing the recycling of end-of-life materials.
The first projects were launched in 2021, including the “Rivending” project to recycle cups from beverage vending machines at the airport. First airport in Italy to activate this initiative, the Marconi estimates that it will get to recycle 300,000 Styrofoam cups per year (corresponding to about one ton). The ultimate goal of the project is the transformation of the used cups into new cups, realizing an effective "closing of the circle”. In parallel, the separate collection of plastic (PET) bottles has been encouraged, with the placement of new dedicated containers. The collection of vegetable oils at some refreshment places has also been activated, to be used to produce biodiesel at the ENI’s biorefinery in Porto Marghera.
In 2021 Bologna Airport and Hera also involved TPER in a circular economy project to support the decarbonization of city mobility. Organic waste produced within the airport is delivered to the Group's S. Agata Bolognese plant where it is transformed into biomethane, along with similar waste produced by citizens. In turn, this biomethane is used by TPER to fuel a substantial part of its bus fleet, with widespread benefits on the entire community.
Still about mobility, a study is underway for the creation of new EVs charging points, available to the public and the airport community.
Finally, Hera provides constant support on how to sort and treat waste produced at the airport.

In April 2022, a protocol between Gruppo Hera and Aeroporti di Roma has been signed to evaluate joint initiatives in favor of sustainability and a circular approach to the management of Fiumicino and Ciampino airports. The agreement is valid for two years and the areas of intervention concern waste management, wastewater treatment in the airport purification plant, and optimization of water network management.
Regarding the waste area, the main objective is to define guidelines to improve the recovery and reuse of waste produced at the airport, identifying the best solutions to manage the main types of waste, minimizing environmental impacts, and optimizing economic management. This will be done by studying possible new operational and management processes to further develop waste collection, also involving staff, suppliers, and passengers, recover waste produced, reduce the production of waste that cannot be recovered, and adopt systems for recovering food surpluses.
The water system is also subject of the agreement, to evaluate possible optimizations to be made to the water treatment plant from a circular economy perspective by favoring processes to reduce the sludge produced by the wastewater treatment process and evaluating the possibility of material recovery. Also under study are systems to optimize the management of water networks, to prevent and limit leaks, with the use of advanced sensor technology and artificial intelligence systems as well.

For Ducati, environmental sustainability is an important aspect that cuts across all areas of the company. Among the various activities fielded by the Bolognese motorcycle manufacturer is the action plan related to reducing the environmental impact generated by waste, for which Ducati has been collaborating with Herambiente Servizi Industriali (HASI) since April 2021. HASI provides an all-round customized service with a strong focus on recycling and recovery.
The results of the collaboration with HASI are already evident: by 2021, the percentage of waste sent for recovery has risen to 98%.
A project aimed at sorting LDPE films for material recovery has also been initiated, and a second one will soon be launched to send wooden pallets for reuse, both interventions aimed at improving positioning within the sustainability pyramid by reducing the impact of waste produced.

Hera Group and Elior - Italy's leading foodservice company - signed a protocol agreement in April 2022 to collaborate on projects addressing circular economy, environmental sustainability, and sustainable mobility. The agreement will have a duration of two years and will be developed through the gradual implementation of a series of environmental actions and initiatives, starting with catering outlets located mainly in the territories served by Hera, and then gradually extending to other regions.
Organic waste produced in the catering outlets will be used to produce biomethane and compost at the Hera Group's plant in S. Agata Bolognese (BO), while separately collected exhausted vegetable oils will be used to produce biodiesel, thanks to the partnership signed by the multiutility with ENI. In addition, charging points for EVs will be set up. The two entities will evaluate collaboration on projects for the recycling and reuse of plastic used in food outlets and for the prevention of waste production, making the most of any waste as much as possible. Hera will also be able to provide support on how to sort and treat the waste produced. Finally, capillary environmental communication activities will be jointly developed targeting both employees and customers, who will be the recipients of targeted environmental campaigns. The numbers involved are important: in Italy, more than 95 million meals are prepared each year by Elior, while 10 thousand people work there in more than 2 thousand restaurants and outlets.

Hera Group and Gridspertise - Enel Group company dedicated to the digital transformation of electricity grids – have signed a collaboration agreement on April 2022 aimed at developing the smart grids of the future through a state-of-the-art integrated system for the collection and measurement of data collected from electricity and gas distribution networks in a multi-service environment.
The agreement involves testing an integrated system of data collected from Hera Group's gas devices and Gridspertise's smart meters for electricity grids. The integration tests in the gas-electricity multiservice sphere will be carried out on the networks operated by Inrete Distribuzione Energia, the natural gas and electricity distribution company of Hera Group.
The result is a package of network management solutions whose key element is to facilitate the energy transition. Based on the results of the trial, the two companies will evaluate joint participation in future tenders - which will also be held outside the country - in which the sale of gas and electricity metering hardware and software solutions will be included. At a later stage, this collaboration may also extend, to solutions involving the integrated water cycle, both in terms of metering and smart grid water.

Hera Group and Federdistribuzione - national association representing modern distribution companies - have signed two three-year memorandums of understanding in February 2022 to collaborate on projects directed at circular economy and energy efficiency. The agreements provide opportunities for the development of specific initiatives mainly in the territories where Hera Group operates i.e., in Emilia-Romagna, Veneto, Friuli-Venezia Giulia, and Marche, including joint information and involvement activities that will reach out to customers. Member companies that join will be able to count on a single interlocutor and targeted projects based on their needs, which are the result of the many years of experience of the several Hera Group companies in the various areas covered by the agreement and which can generate significant benefits, also in terms of PNRR.
There are numerous projects proposed by the multi-utility to its member companies: from identifying circular economy solutions for packaging, to enhancing the recycling of plastic; from creating activities to combat food waste, to preventing production of waste and adopt its optimal management. Not forgetting activities aimed at creating circular supply chains and/or districts among companies that can achieve economies of scale and generate opportunities for industrial symbiosis, including for the purpose of possible financing. On the energy efficiency front, the Hera Group will offer Federdistribuzione member companies its expertise by supporting them in the study and implementation of targeted energy efficiency interventions based on their needs. It will also provide assistance in accessing incentive systems, which often involve rather complex procedures such as white certificates i.e, negotiable securities that certify the achievement of savings in energy end-use through energy efficiency enhancement interventions and projects.