Italian energy company Eni is exploring a new investment approach known as a "satellite strategy," where investors can choose to back either fossil fuel or renewable energy projects independently. This innovative approach is aimed at attracting a wider range of investors, catering to those who prioritise traditional energy sources as well as those interested in green projects. By creating separate financial and management structures for each type of energy, Eni aims to provide transparency and reassurance to investors.
This move aligns with the growing trend in the energy sector, where companies like Eni are seeking to balance their commitment to meeting current energy demands with the development of more sustainable energy solutions. While some oil and gas giants have been hesitant to fully embrace renewable energy due to profitability concerns, the satellite model offers a compromise by ensuring that profitable traditional projects continue while highlighting the potential of greener alternatives.
Eni's CFO emphasised that the satellite model aims to secure diverse funding sources to meet the ongoing demand for traditional energy products while accelerating the development of innovative, eco-friendly solutions.
This strategic shift comes as Eni reported its first-quarter results and detailed its plans for expansion, including a recent partnership with Ithaca Energy to consolidate their British North Sea oil and gas projects. In a statement, Eni's CEO Claudio Descalzi expressed confidence in their exploration and development capabilities, highlighting a significant discovery in Cote d'Ivoire and the rapid start-up of a liquefied natural gas project in Congo.
