Italy’s Eni to off-take renewable energy from Albania via planned 1 GW subsea link

Italy’s energy major Eni has secured the status of a preferred off-taker of renewable energy transmitted from Albania to Italy through a planned 1 GW subsea interconnector by signing an agreement with Emirati partners.

Eni’s Chief Executive Officer Claudio Descalzi has signed three collaboration agreements with Emirati companies covering the development of renewable energy capacity transmission through cross-border interconnection, data centers and critical minerals, during the state visit of the UAE President Sheikh Mohamed bin Zayed Al Nahyan, and in the presence of Italian Prime Minister Giorgia Meloni.

The Italian company signed an agreement with Abu Dhabi Future Energy Company (Masdar) and Taqa Transmission for the establishment of long-term power off-take arrangements in Italy with Eni as a preferred off-taker of the renewable energy generated in Albania with a capacity of up to 3 GW transmitted through an up to 1 GW cross-border subsea interconnection between Albania and Italy.

The agreement follows the tripartite strategic partnership framework the governments of Italy, Albania, and the UAE signed in Abu Dhabi last month.

The link would run under the Adriatic Sea from Albania’s Vlora to Italy’s Apulia, Puglia, with completion expected within three years.

Furthermore, Eni has signed a letter of intent (LoI) with MGX, an investment fund focused on AI and advanced technology investment, and G42, an AI-focused group based in Abu Dhabi, to develop data centers in Italy to store, process, and manage large amounts of data, with a planned IT capacity of up to 1 GW.

The facilities will be fully powered by blue power supplied by Eni, a low-carbon energy source generated by natural gas power plants whose CO2 emissions are captured and stored.

The first project is planned for Ferrera Erbognone, home to Eni’s Green Data Centre, and will be developed in two phases of up to 500 MW of IT capacity, equal to Italy’s current installed capacity. This project will be supported by a new dedicated power plant, with CO2 capture and storage at the Ravenna CCS hub.

Thirdly, Eni and ADQ, a sovereign investor with a focus on critical infrastructure and supply chains, signed a memorandum of understanding (MoU) to collaborate on the research and development of critical minerals.

“Our partnership with the UAE is a testament to our shared commitment to a sustainable energy future, leveraging innovation and collaboration across key sectors,” Descalzi said.

“Together with leading UAE companies we will develop initiatives in areas that are essential in the energy transition, such as data centers powered by blue energy, a model able to respond to AI’s growing demand of sustainable computing capacity. This strategic cooperation underscores our dedication to driving technological progress and contributing to the energy security on a global scale.”

Eni has been present in the UAE since 2018. The company operates in Abu Dhabi’s offshore exploration sector, holding a 70% stake in Blocks 2 and 3, and also owns a 10% share in the offshore Ghasha concession, currently under development.

In the production sector, Eni holds stakes in the offshore concessions of Lower Zakum (5%) and Umm Shaif/Nasr (10%). Eni also owns 20% of ADNOC Global Trading and ADNOC Refining. The latter operates in the Ruwais area, with a total refining capacity exceeding 900,000 barrels per day. The Ruwais complex is said to rank as the world’s fourth largest in terms of capacity.