June 5, 2020 Read More →

Italian oil major Eni to restructure, creating ‘energy evolution’ unit to push green transition

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Italian oil major Eni has announced a major restructuring that its chief executive describes as an “irreversible path” that will make the company a leader in the energy transition.

The company will be split into two new business groups: “Energy Evolution” — focusing on power generation and the switch from fossil fuels to “bio, blue and green” — and “Natural Resources”, which will incorporate its oil & gas activities, including carbon capture and storage (CCS).

“This new structure reflects Eni’s pivot to the energy transition; an irreversible path that will make us leaders in decarbonised energy products.,” said chief executive Claudio Descalzi.

In late February, Descalzi announced plans for Eni to build 55GW of renewable energy projects by 2050 and reduce the emissions of its products by 80% by the same year, which he said would keep it in line with the Paris Agreement. The company already builds its own wind and solar projects.

“Energy Evolution will focus on the evolution of the businesses of power generation, transformation and marketing of products from fossil to bio, blue and green,” Eni said in a statement, presumably referring to “blue hydrogen” produced from natural gas with CCS. “In particular, it will focus on growing power generation from renewable energy and biomethane, it will coordinate the bio and circular evolution of the company’s refining system and chemical business, and it will further develop Eni’s retail portfolio, providing increasingly more decarbonised products for mobility, household consumption and small enterprises.”

The new company structure is expected to be implemented “over the coming weeks”, with Eni saying chief financial officer Massimo Mondazzi will leave his role on 1 August to head up the Energy Evolution business.

[Leigh Collins and Eoin O’Cinneide]

More: Oil giant Eni to restructure as it embarks on ‘irreversible path’ to be an energy transition leader

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