Eni, GE in Renewables Tie-up
Tuesday 22 November 2016
Italian major and US engineering giant team up to develop large-scale solar and wind projects.
Italian major Eni plans to jointly develop large-scale renewables with US industrial giant GE under a framework agreement that encompasses onshore and offshore wind, as well as solar.
"Through this agreement, Eni and GE intend to jointly identify and develop large-scale power generation projects from renewable energy sources," said a statement.
Eni – which already works with GE in its fossil-based operations – said the arrangement will “enhance its ability to implement projects” in renewables, but gave few further details.
The framework deal also covers hybrid gas/renewables projects, waste-to-energy, and energy efficiency initiatives, as well as the "electrification of new and existing assets".
The arrangement with GE links Eni with a major renewables technology group – including the US company’s ambitious offshore wind division.
GE has not yet commented on the framework deal or how it might play out in practice.
As well as its global oil and gas business Eni has an Italy-based power generation arm that produced 20.7 terawatt hours last year.
It has a long-standing presence in solar research & development and bioenergy, but in 2015 created its Energy Solutions Division to explore renewables "through profitable projects on an industrial scale".
Like other oil and gas majors, Eni is seeking the best way to carve out a viable position in fast-growing clean energy markets.
A report from consultancy Wood Mackenzie this week said timing would be "critical" for fossil giants as they manage the transition from their existing operations into new climate-friendly areas.
Eni was one of 10 to sign up to a $1 billion oil and gas sector initiative launched earlier this month to support innovative emissions-reducing technologies.
It is also part of the DNV GL-led joint industry project developing the Win-Win floating wind-based system for enhanced oil recovery.