October 26 (SeeNews) - Greek energy group Hellenic Petroleum, which is rebranding to Helleniq Energy as part of a strategic transformation, is exploring options to implement renewable energy projects in Southeast Europe (SEE), CEO Andreas Shiamishis told SeeNews.
"We are also investigating opportunities for the development of RES [renewable energy sources] projects in the wider region of the Balkans and SEE. Growth will come through a combination of organic growth and acquisitions, as well as a diversified geographic footprint, taking into account each market's maturity, regulatory framework and portfolio returns," Shiamishis told SeeNews in an e-mailed interview earlier this week.
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Helleniq Energy, one of the biggest sector groups in SEE, operates three oil refineries in Greece, as well as a network of filling stations in Bulgaria, Greece, Serbia, Montenegro and North Macedonia operating under the EKO brand, the OKTA oil refinery in North Macedonia, and filling stations in Cyprus. Its rebranding is the last stage of a transformation from an oil company into an organisation that will be active in the entire spectrum of energy, integrating environment, social and governance (ESG) criteria into its operation, with a focus on renewable energy sources.
In total, the immediate investment plan for the transformation of the group will amount to approximately 4 billion euro, half of which is targeted at the modernisation of its traditional activity and the production of low-emission liquid fuels, while the rest will be allocated to energy transition, with an emphasis on cleaner forms of energy and the reduction of CO2 emissions, Shiamishis said.
"The main aim is to develop a diversified energy portfolio," he stressed.
Through its subsidiary ELPE Renewables, Helleniq Energy has become the fastest growing company in new RES projects in Greece. In less than two years, the group increased twelvefold its installed capacity to 340 MW. It targets 1 GW of projects in operation by 2026 and 2 GW by 2030, a development that will enable a 50% reduction in its carbon footprint by 2030.
In April, the group launched a 204.3 MW photovoltaic park near Kozani, in northern Greece, the largest RES project in the country and the largest PV park with double-sided frames in Europe. Helleniq Energy invested 130 million euro in the park, which produces 350 GWh of energy annually, meeting the needs of 75,000 households. The group is framing the Kozani park with the installation of a 125 MW system, “in front of the meter” type, in order to more efficiently manage the electricity production. Two other storage projects, totaling 125 MW, are being implemented at its industrial facilities in Thessaloniki and Elefsina. Storage systems using batteries, with a total power of 300 MW and a capacity of 650 MWh, are also in various stages of development.
Recently, the group acquired two wind farms in operation with a total capacity of 37.2 MW and an operating factor of over 40% in the region of South Evia, an investment totaling 85 million euro, and signed binding contracts for the acquisition of wind farms which are in operation in eastern Mani of Laconia, with a total capacity of 55.2 MW and a price tag of 90 million euro. In the field of offshore wind, the group has entered into a strategic partnership with Germany's RWE Renewables.
SMOOTH OPERATION OF FILLING STATIONS IN SEE ENSURED
After Russia launched its invasion of Ukraine, the group stopped the supply of Russian crude oil and replaced these quantities with other types of crude oil from different countries and sources of supply.
"The fact that Helleniq Energy's refineries are located on coasts with access to ports gives us the opportunity to import many different types of crude oil, an advantage that other refineries in Europe do not have. Even on the question of natural gas supply, Greece is better placed than other EU countries, as the agreements to supply gas from Azerbaijan, LNG from Algeria and LNG from other countries, give a flexibility to the country against other European states," Shiamishis noted.
"Having ensured the uninterrupted supply of our refineries, at Helleniq Energy we can guarantee the smooth operation of our retail network in the wider region of SEE and the Balkans, but also the energy sufficiency and security of the countries where we operate, including North Macedonia, where the reopening of the pipeline connecting OKTA's facilities with Thessaloniki will have multiple benefits," he went on to say.
Okta, located near Skopje, owns crude oil refining facilities with a nameplate capacity of 2.5 million metric tonnes and storage facilities with a total capacity of 350 million litres. A pipeline linking the port of Thessaloniki with the OKTA oil refinery outside Skopje began full-scale operations in July 2002 but stopped in 2013.
According to Shiamishis, today's energy crisis is not just a consequence of the war in Ukraine but the result of delayed decisions to develop the necessary infrastructure.
"We face today's energy crisis, knowing that it is a structural one. It is not solely related to the invasion of Ukraine, or the fallout from the pandemic that preceded it worldwide, and it will not be completely overcome in a few months, but it will last. It must be clear that the shift of the international community and the EU to a green economy with a low footprint will also include the necessary costs for the attempted transition. But it remains the only path to a sustainable future that will ensure Europe's energy sufficiency with cleaner forms of energy that will become more economically competitive over time," he concluded.
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