Galp's Spanish headquarters. Image credit: Galp.
Oil major Galp is to allocate up to 15% of its overall investments to renewable power generation and businesses, with a view to amassing a 10GW clean energy portfolio by 2030.
As part of its latest financial update, released on Tuesday, the Portuguese energy conglomerate said it will focus renewables deployment on the Iberian Peninsula, but will not rule out opportunities in other geographies that comply with “investment criteria”.
In late January, the oil and gas player struck a major deal with construction firm ACS Group to deliver 2.9GW of Spanish PV within four years, bringing yet more activity to Spain's booming PV market. About 914MW of those newly acquired assets are already operating.
Galp expects capacity to reach 3.2GW by 2023, with equity return from the portfolio expected at “above 10%”.
The company said that its renewables power generation portfolio represents “a natural hedge to our Iberian activities, aligned with the global electrification trend and with the transition path to reduce our carbon intensity”.
More than 40% of investments moving forward will be aimed at "capturing opportunities from the energy transition".
Galp’s targets add to the green moves by fossil fuel operators over the past few weeks. BP, Repsol and Equinor have all announced plans for net-zero emissions by mid-century, with the IEA urging others at Davos last month to ramp up climate investments.
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