Government initiatives alone are not enough to meet net-zero requirements by the 2050 deadline. Luckily there are renewable solutions that the world can turn to in this time, but a significant amount of investment is required to lower emissions to a manageable level. Naturgy, a Madrid-based energy group that develops an innovative, end-to-end and sustainable business model, intends to invest heavily in the industry.
The company’s plan will see almost €9bn dispersed into projects over the next five years—more than doubling its total investment in the industry. What will this investment mean for global energy developments?
Investing in Global Renewable Energy
Naturgy already has an international presence across the Europe, America, Asia and Oceania regions. The company has more than 175 years in the energy sector, with its current services focused on renewable electricity and gas. Its recent investment allocation will provide funding for various projects, including the addition of 5.2GW of renewable energy capacity in Europe, 2.2GW of energy in Australia, and further capacity expansion in parts of the US and Chile.
The investment in international renewable energy will average around €1.73bn per year, which will increase the sector’s earnings before interest, taxes, depreciation and amortisation (EBITDA) by more than 22% to €1bn by 2025, and €2.7bn for the company by the end of the period of strategic change.
Implementing Renewable Gas
Naturgy will also invest more into alternative methods of energy, including renewable forms of gas and hydrogen. The company will develop the Spanish gas grids network, of which 95% has already been altered for the use of renewable gas and hydrogen. Further adaptations to the network will help drive the final stages of renewable implementation.
The company believes the project will allow more than one terawatt-hour of renewable gas to be pumped into Spain’s gas transmission system within the next five years. In the meantime, Naturgy will further investigate opportunities to develop other areas of alternative energy, including thermal generation across Spain and Latin America.
‘We are all committed to meeting the main targets’, says Francisco Reynes Massanet, Executive Chairman at Naturgy. ’We want to join in the transition and we believe that this plan is ambitious, but also realistic and executable. [...] We must seize the opportunity to contribute to the transformation of the sector with drive and solvency. [...] Spain is strategically well placed to tackle the transition with reasonable assurance, for which a stable regulatory framework is vital’.
‘We are ready for a new stage of transformation. Naturgy has demonstrated its ability to achieve results and create value in its businesses on a daily basis. [...] Our position is to accelerate our transformation and anticipate the many challenges ahead of us as a society, industry and country.’.