Eni to focus on energy transition through major business revamp

Italian energy company Eni SpA (BIT:ENI) will undertake a major restructuring that aims to separate its traditional oil and gas business from assets related to energy transition.

The company unveiled the plan on Thursday after it was greenlighted by its board of directors, calling it an “irreversible path” that will make it a leader in the energy transition.

The revamp envisages splitting Eni’s operations into two new business groups -- Energy Evolution and Natural Resources. The first one will focus on power generation and the transition from fossil fuels to “bio, blue and green,” through the production of power from renewable energy sources and biomethane. It will also be involved in the “circular evolution” of Eni’s refining system and chemical business and the development of decarbonised products for mobility, household consumption and small enterprises. The Natural Resources unit, meanwhile, will incorporate its oil and gas operations, natural gas, energy efficiency and carbon capture and compensation.

“This new structure reflects Eni’s pivot to the energy transition. An irreversible path that will make us leaders in decarbonised energy products,” said CEO Claudio Descalzi.

The reorganisation is in line with Eni’s strategy to evolve its business over the next 30 years. Under the plan, presented in February, it set a goal to progressively expand its installed renewable energy capacity around the world to more than 55 GW by 2050 and reduce the emissions of its products by 80% by the same year. Eni's current activities in the renewables field include the operation of wind, solar and hybrid power plants in Italy, Africa, Pakistan, Kazakhstan and Australia.

While the two new business groups will have specific goals, they will cooperate to reach the transition and sustainability targets. The new company structure is expected to be implemented “over the coming weeks”, with current chief financial officer Massimo Mondazzi keeping his post until August 1. After this date, he will head the Energy Evolution business.

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