Japan’s Inpex Enters Australian Renewable Energy Business

Japanese oil and gas firm Inpex has agreed with Enel Green Power S.p.A. (EGP), a subsidiary of Italian utility company Enel S.p.A. (Enel), to acquire half of its Australian operations for about US$225 million.

EGP is currently engaged in renewable energy operations including wind, solar, storage, and hybrid projects, across Australia, alongside expanding its activities in innovative solutions within its retail and trading operations.

Tokyo-based Inpex will purchase 50% of shares in EGP through its newly established subsidiary Inpex Renewable Energy Australia and upon the transaction closing, is expected to jointly control EGP, overseeing the company’s current renewable generation portfolio and continuing to develop its project pipeline, targeting an increase of EGP’s installed capacity.

This move will ensure EGP will continue to drive the energy transition underway in Australia, accelerating its contribution to achieving the country’s net zero target.

Inpex is seeking to enhance and emphasise its renewable energy initiatives, which are one of the 5 net zero businesses outlined in its Long-term Strategy and Medium-Term Management Plan (INPEX Vision @2022) formulated in February 2022 and will accelerate its business expansion by leveraging assets acquired through mergers and acquisitions as a platform.

This acquisition of shares in EGP significantly marks Inpex’s entry into a diverse renewable energy market in Australia, which is one of Inpex’s core business areas.

Going forward, Inpex said it will continue to proactively engage in transforming the energy landscape towards the realisation of a net zero carbon society by 2050 while fulfilling its responsibility of developing and providing a stable supply of energy.