Eni: Rise of renewables and less oil, the new ‘green revolution’ plan
Eni launches its “green revolution”: The strategic plan for the next 30 years, announces the company transformation into an all-round energy company, focused on natural gas and renewables. As for the greenhouse gas’ emissions, it is committed to cutting them by 80% by 2050.
MORE GAS AND LESS OIL
To live up to its schedule, the company promises that hydrocarbon production will grow by 3.5% each year until 2025, but it will then decline flexibly mainly in its oil component. In short, Eni will increasingly become a gas-company, whose production in 2050 will make up about 85% of the total. The value of almost all oil reserves in the portfolio (94%) will have to be cashed in by 2035 (the break-even point is at 20 dollars a barrel, and the underlying assumption is a price of brent at 50 dollars, just below the current value).
CO2 AND RENEWABLE PLAN
To make gas production sustainable, Eni will launch forest conservation and CO2 ‘capture’ projects for more than 40 million tons per year by 2050. By that date Eni intends to develop more than 55 Gigawatts of renewable energy plant capacity and reach 20 million retail customers to which they sell the electricity produced, mainly in OECD countries. To give a comparison: Enel currently has about 90 Gigawatts worldwide.
IT STARTS IN RAVENNA
The first Eni project for CO2 capture will be in Ravenna, the next hub for Italy, where the possibility of conveying CO2 captured from industrial settlements and from electricity generation to the depleted gas fields of the Adriatic offshore is already being studied.