Eni spends $545m to join world’s largest wind farm

Photo: EPA Claudio Descalzi

Italy’s Eni has said would acquire a 20% stake in the project known as Dogger Bank Wind Farm development. The seller will be Norway’s Equinor and Britain’s SSE and the value of the transaction is estimated at a combined 545 million dollars, the companies said, quoted by Reuters.

The renewable energy project off the northeast coast of England is seen turning into the world’s largest offshore wind farm, helping companies achieve planned climate targets.

Following the deal, SSE and Equinor will each hold 40% while Eni will control the remainder of 20%.

“For Eni, entering the offshore wind market in Northern Europe is a great opportunity to gain further skills in the sector thanks to the collaboration with two of the industry’s leading companies,” Eni CEO Claudio Descalzi said in an statement.

The deal covers the first two parts of the Dogger Bank development, known as A and B, which were given the go-ahead for construction last week, while Equinor and SSE each retain 50% stakes in phase C, which is still in the planning stages.

Parts A and B will add a combined 2.4 gigawatt of capacity, with the two phases scheduled for completion in 2023 and 2024 respectively.

Phase C could add a further 1.2 gigawatt in 2026, at which time Dogger Bank would produce enough electricity to supply 5% of British demand, equivalent to powering six million homes each year, the companies have said.

Britain is already the largest offshore wind market in the world and is aiming for 40 GW of capacity by 2030, up from 10 GW now.

Along with many other oil majors Eni plans to massively increase its renewable power generation to reduce its reliance on fossil fuels and meet internal climate targets.

To do that it will have less oil and more gas on its books while building a clean energy portfolio that includes renewables, biorefineries and carbon capture projects.

Eni is aiming to cut its greenhouse gas emissions by 80% by 2050 in absolute terms and plans to have more than 55 gigawatts of renewable capacity by 2050, up from less than 1 GW in 2019. Equinor in September announced the sale of a 50% stake in two U.S. wind farm projects to BP, booking a $1 billion profit.

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