Eni starts process to list green arm

Italian energy company Eni said October 29 that it was focused on capital discipline and the “rapid” development of technologies to accelerate the energy transition, noting it had begun the process of listing its retail and renewables division.

Eni reported adjusted net profit of €1.4bn ($1.6bn) during the third quarter, one of its best performances to date. Cash flow over the first nine months of the year came in at €4bn.

The Italian company said it initiated a public offering for its retail and renewables division, which it said would not only generate more value but was an “essential” component of its effort to decarbonise what its retail customers consume. Eni said earlier this month it intended to retain a majority stake in the listed company, although the latter will be financially independent with its own balance sheet and credit rating.

“Eni will remain focused on capital discipline to reduce our cash neutrality, the rapid deployment of new technologies to speed up the execution of our decarbonisation plans and, on the acceleration in establishing dedicated business vehicles as a key strategic element to focus our growth and to highlight the full value of our portfolio,” CEO Claudio Descalzi said.

Outside the retail segment, the company said it planned to continue investing in the HyNet CCS project in the UK. HyNet will take CO₂ from an industrial cluster in the northwest, including the hydrogen facilities, and inject it into depleted Liverpool Bay gas fields, saving operator Eni the cost of decommissioning.

HyNet has the potential to sequester as much as 10mn metric tons of CO₂ by 2030.

Even with its low-carbon commitments, however, the company said it expected total hydrocarbon production to average around 1.7mn barrels of oil equivalent/d for full-year 2021 and expected more fossil fuels from projects off the coast of West Africa.

And like others in the industry, the company pointed to natural gas as a bridge fuel for the energy transition. It signed an agreement October 29 with Russian energy company Gazprom to revise the terms of its existing gas supply contracts.

“The agreement underlines the importance of the role played by gas in the ongoing decarbonisation process and sustainability strategies,” Eni stated.