Eni and HitecVision form Nordic renewable energy venture

FILE PHOTO: The logo of Italian energy company Eni is seen at a gas station in Rome, Italy September 30, 2018. REUTERS/Alessandro Bianchi

OSLO/MILAN (Reuters) – Norwegian private equity group HitecVision and Italy’s Eni have formed a joint venture to develop renewable energy in the Nordic region, building on their existing cooperation in oil, the firms said on Wednesday.

The Vaargroenn venture, which will be 69.6% owned by Eni, aims have installed electricity capacity of 1 gigawatt towards 2030, initially targeting offshore wind in an upcoming tender in Norway.

In 2018, HitecVision and Eni formed a joint oil and gas venture with an identical ownership structure, Vaar Energi, which operates several fields off Norway, including the Arctic Goliat oilfield.

The Vaargroenn venture will be led by Olav Hetland, former head of offshore wind at Norway’s largest power firm Statkraft, the companies said.

“This new joint venture is part of Eni’s overall strategy for decarbonisation and contributes to the progression of our transformation path towards green energy and the circular economy,” Massimo Mondazzi, who heads Eni’s new division focused on renewable energy, said in a statement.

Eni is aiming to cut its greenhouse gas emissions by 80% by 2050 in absolute terms, including emissions from refined products such as diesel or petrol when they are used by customers to drive cars, for example.

To do that it will have less oil and more gas in its portfolio, build its renewable capacity, convert refineries to biofuels and step up forestry and carbon capture projects.

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