Eni restructures, refocusing on renewable clean energy
…Creates new division that slashes its greenhouse gas emissions by 80%
Italian oil giants, Eni has concluded plans to establish a new green division to focus on renewable and clean energy business solutions. The restructuring plans come as the world of oil and gas sector faces a collapse following the corona virus epidemic and long-term uncertainty over energy demand as governments battle climate change.
Hellenic Shipping News, yesterday, quoted an unnamed inside source saying the state-controlled group is looking to create the new green division to look after renewable and other clean energy business while keeping oil and gas activity in a separate unit.
The source said the new Eni division, which could be headed by its Chief Financial Officer (CFO), will be at the front of the company’s dynamics to step up preparations for a decarburized future. “Long-time CFO Massimo Mondazzi could be moved across to head up the new division, or part of it, one of the sources said, adding that no final decision had yet been taken,” the source said
The online news agency also quoted a second source, “Mondazzi is going to be head of downstream, chemicals and renewable.”
Italian daily Il Sole 24 Ore reported the potential overhaul last Tuesday. Eni, headed by veteran oilman Claudio Descalzi, pledged earlier this year to slash its greenhouse gas emissions by 80% in one of the most ambitious clean-up drives in an industry under pressure from investors to go green.
To reach the goal it is looking to have less oil and more gas in its portfolio, build its renewable capacity, convert refineries to bio-fuels and step up forestry and carbon capture projects. “The restructuring underway is a move that will focus minds and give the market an idea of the actual size of Eni’s green business,” one of the sources said.
The sources said the new division was likely to include the group’s chemical business Versalis, its retail activities and probably refining, though final details had yet to be ironed out.
Chibisi Ohakah, Abuja