Eni has announced one of the most ambitious clean energy programmes in the industry, promising to reduce greenhouse gas emissions by 80 per cent.
In its new business plan, the Italian energy group still expects oil and gas production to grow 3.5 per cent, but said it would peak in 2025 before declining.
“We have designed a strategy that combines economic sustainability with environmental sustainability,” said chief executive Claudio Descalzi. “The result will be a portfolio that is more balanced and integrated and will be stronger for its adaptability.”
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Eni’s ambitious clean-up plans come weeks before the Italian government, which holds a 30 per cent stake in the company, decides whether to re-appoint Descalzi as CEO.
Four senior political sources told Reuters that the government was leaning towards giving Descalzi a third term, provided he works with a new board to introduce cleaner sources of energy.
However, his potential reappointment comes as Descalzi faces trial in Milan. Eni and Royal Dutch Shell are accused of corruption regarding a Nigerian offshore field on which they allegedly paid a $1.3bn bribe to facilitate the deal.
Eni’s ambitious clean-energy target covers not only what Eni produces but also what it buys from third parties.
To hit this target the CEO said Eni will invest in renewables and biomethane, and decarbonise any gas it produces using carbon capture and storage.
The state-controlled group’s plans come as the company releases its fourth-quarter earnings. Net income came in at €546m, missing the €680m consensus provided by the company.