Italian oil and gas company Eni has announced that its Badamsha wind farm in Kazakhstan is ready to begin commercial operations.
Developed through Eni’s renewable energy subsidiary ArmWind LLP, the 48MW site is located in the Aktobe region in the northwest of the country. Capable of generating 198 GWh of energy, Badamsha will mitigate 172,000 tonnes of CO2 per year.
Primarily known for its business involving fossil fuels, this project represents Eni’s first significant investment in renewable energy.
However, it is certain not to be the last; the company has already secured an additional 48MW and 50MW developments - an extension to the Badamsha site and a solar plant in Turkestan respectively.
Finding a new focus
As well as continuing its oil operations in the Northern Caspian Sea, which is currently producing 180,000 barrels of oil per day, Eni is enthusiastically embracing new ways of generating energy.
“These initiatives are in coherence with Eni’s strategy that combines economic sustainability with environmental sustainability, allowing the company to be a leader in the market,” it said in a press release.
Stating that its new goal was to diversify its portfolio through supplying ”decarbonized energy products and actively contributing to the energy transition process”, Eni plans to achieve 5GW of renewable energy by 2025.
Planning for the future
Whilst some companies remain unsure of how COVID-19 (coronavirus) will affect their business, Eni has revised its 2020-2021 business plan with “actions to maintain robust balance sheet and dividend,” said Claudio Descalzi, CEO.
Accordingly, the company will reduce capital expenditure by €2bn or 25% and operating expenses by €400mn for 2020, with capex expected to drop even further the following year to between 30 and 35%.
Compounded by falling oil prices that have recently compromised the market, Eni will continue with this strategic thinking until the situation improves. Nevertheless, the company intends to maintain an output of 1.84mn barrels per day.
Although there’s clearly difficult time ahead, Descalzi remained stoic and confident in the company. “We are taking these actions in order to defend our robust balance sheet and the dividend while maintaining the highest standards of safety at work,” he concluded.