Romanian state-owned utility company Hidroelectrica is set to use proceeds from its upcoming IPO to expand partnerships with developers on new renewables projects, Bloomberg reports. The company intends to pull the trigger on its IPO on the Bucharest Stock Exchange by June, which is expected to raise as much as EUR 2.3 bn from the sale of a 20% stake. The company’s hydroelectric power capacity was pushed down by a prolonged drought last summer, which has shifted the company’s focus to investing in alternative energy sources including solar and wind, CEO Bogdan Badea said, according to Bloomberg.

Pushing forward with or without EU funding: Although a sizable portion of the EUR 80 bn Romania will receive in the next four years from the EU will be earmarked for renewables projects, Hidroelectrica will maintain a bullish approach and not be “bogged down in the red tape that can accompany energy projects,” Badea told Bloomberg. The company will rely on its own purse and potentially raise debt as it pushes to increase production capacity and divest away from hydro power, he added.

REMEMBER- Hidroelectrica has caught some regional interest lately: The company signed a cooperation agreement with the UAE’s Masdar last month to develop offshore wind and floating solar energy projects in Romania that will generate some 2 GW of clean power.

British oil giants partner on carbon capture: British oil companies Harbour Energy and BP have entered into an agreement to develop the Viking CCS carbon capture and storage plant in the UK’s Humber region, Reuters reports. Under the agreement, Harbour would maintain its 60% share of the plant and BP would acquire a 40% stake in the facility, which is expected to have a carbon storage capacity of 10 mn tons per year by 2030. The agreement follows the UK government’s announcement on funding two carbon capture clusters in the country that are capable of collectively sequestering some 10 mn tons of CO2 annually by the end of the decade.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • The OPEC Fund for International Development has approved a loan of USD 100 mn to finance climate adaptation infrastructure in Paraguay. The country was hit with a severe drought from 2019 to 2021, which experts say was exacerbated by climate change and deforestation. (Wam)
  • India’s central bank is preparing a framework for accepting green deposits to facilitate investment in renewables. The framework — which is expected to come into effect on 1 June — is part of the government’s efforts to boost green finance and mitigate climate-related financial risks. (Reuters)
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