Eni Embarks on Green Energy Quest

Italian oil major Eni, which has historically invested little in renewable energy given its strong track record in discovering oil and gas, plans renewable energy projects in Italy, Pakistan and Egypt.

 

As part of a push into green energy, Eni aims to bring 420 megawatts of mostly solar power generation online by 2022 by reusing derelict land linked to existing fossil fuel operations.

 

The world is currently adding more clean energy capacity than coal, oil and gas combined and Eni joins other oil majors in turning to green energy investments to curb carbon emissions and get a foothold in the fast growing sector.

 

Last year, Europe's top oil firms urged governments around the world to introduce a pricing system for carbon emissions as part of a wider push to move to a low-carbon economy.

 

French oil company Total said this week it was buying high-tech battery maker Saft as its seeks to expand its renewable energy business.

 

In Italy alone, Eni said on Thursday it expects to build more than 220 megawatts of solar power capacity in regions including Liguria, Sardinia, Sicily, Calabria, Puglia and Basilicata for an estimated 200 to 250 million euros.

 

Eni's existing gas-fired plants will be used in tandem with solar to cover any shortfalls when the sun doesn't shine.

 

But oil and gas remains at the heart of Eni's investment plans and last month Eni Chief Executive Claudio Descalzi outlined plans to invest 20 billion euros ($23 billion) in Africa over the next four years, mostly in oil and gas, while also boosting the continent's energy mix by spending on renewables.

 

Eni previously said it was ready to spend "hundreds of millions" of euros on solar power projects in Africa, where it is the largest foreign oil and gas producer.


($1 = 0.8766 euros)

(By Oleg Vukmanovic and Stephen Jewkes; Editing by Alexander Smith)