Italian Oil Major Eni Makes Big Clean Energy Push

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Italian oil major Eni (NYSE:E) has jumped on the clean energy bandwagon like many other oil and gas companies by securing a major portfolio of European wind and solar projects.

The company has, through its subsidiary Eni Gas e Luce, agreed to acquire a portfolio of 1.2 gigawatts (GW) of solar and wind assets in Spain from private equity manager Azora for an undisclosed sum. The company has also swooped in to buy out the Dhamma Energy Group which has operational solar plants in France and Spain with a capacity of 120 megawatts (MW) and a pipeline of solar projects with a capacity potential of 3 GW. Roughly 400 MW of those projects are at an "advanced stage of development."

Industrial Info is tracking 10 Dhamma projects under development in France and Spain, representing a total investment value of US$261 million. The value of the acquisition was not revealed.

With the Azora deal in Spain, Eni will get three windfarms in service and a windfarm under construction in the central/northern area of the country, for a total of 230 MW, as well as five large solar projects in advanced development for around 1 GW. The projects under construction will be commissioned by 2024, and both companies will work together "to further scale-up Eni's renewable energy platform in Spain."

Industrial Info is tracking the company's 104-MW Cuevas de Velasco onshore windfarm project in central Spain, worth more than US$113 million and expected to be commissioned at the beginning of next year.

Claudio Descalzi, chief executive officer of Eni, commented: "This operation allows us to increase our renewable power generation capacity with immediate effect, in compliance with our planned targets, and at the same time to reinforce our growth prospects through a pipeline of solar projects in a strategic market like the Spanish one, where Eni gas e luce is now working on this project with a strong Spanish partner as Azora."

In February, Eni signed an agreement with X-Elio for the acquisition of three solar projects in southern Spain for a total capacity of 140 MW.

Speaking about the Dhamma acquisition, Descalzi said it would boost its green growth strategy by "continuing to expand in Spain and especially by launching our presence in the renewables sector in France, where Eni gas e luce already has a solid presence and a significant customer base. For Eni gas e luce, France and Spain are pivotal markets in which the company will increasingly enhance its value through the integration between retail and renewables."

Olivier Crambade and Philippe Esposito, Dhamma's Co-Founders, commented: "In the current environmental, social and political context with a greater than ever focus on decarbonization and sustainability, it is reassuring to see industry leading companies like Eni fully embracing the energy transition. With this transaction, we are proud to contribute to Eni gas e luce's renewable energy ambitions."

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