Eni Fleshes Out Low-CO2 Power for Africa Strategy
Eni has outlined plans to “maximise the use of gas as a fuel of choice for electricity generation in particular in countries where we operate” through new access to energy projects in Ghana, Mozambique, Angola, Congo and Nigeria, and to launch renewable power projects in Egypt, Pakistan and Italy.
Last month CEO Claudio Descalzi said that oil producers should also invest in power – including renewable energy – in the developing world in order to reduce their dependency on biomass and coal, suggesting that European countries might consider tax breaks to stimulate such investments.
On May 12, Eni outlined how this latest initiative is part of its strategy of energy transition towards a low-carbon future, reducing CO2 emissions and maximizing utilisation of gas in power generation.
In Egypt, Eni aims to build a solar plant near the Belayim field, with an installed capacity of up to 150 MW by end-2017, with energy produced used both in the field and put through the national grid. It also intends to develop a 50 MW solar plant in Pakistan near its Kadanwari gas field by end-2017.
Eni's Progetto Italia will involve the installation by 2022 of over 220 MW of renewable generation at a cost of €200-250mn, reducing CO2 emissions by about 180,000 tons per year.
In a statement on decarbonisation to its May 12 AGM, Eni “acknowledged the challenge posed by climate change and the need to limit this century the temperature increase to 2°C above the level of the pre-industrial era” but said demand for energy will continue to grow in emerging economies.
Eni said it would continue to grow its core business, while minimising emissions, with the aim of a further 24% reduction in emissions from current levels, along with the achievement of zero routine flaring by 2025 and a 43% reduction of emissions per barrel produced.
Although Eni did not say this, it's conceivable that greater availability of gas from Eni's giant Zohr discovery in Egypt may cause some coal-fired power projects there to be deferred, helping to avert a sharp rise in the country's CO2 emissions.
Mark Smedley