Colombia's Ecopetrol to invest at least USD 1.2bn in energy transition in 2023

Colombian oil-and-gas major Ecopetrol SA (NYSE:EC) said it would spend between COP 5.9 trillion (USD 1.23bn/EUR 1.16bn) and COP 6.8 trillion in energy transition initiatives, such as renewables and hydrogen, as part of the investment plan for 2023.

The dedicated amount will represent around 23% of the total spending, calculated at between COP 25.3 trillion and COP 29.8 trillion. Ecopetrol said it would use the energy transition funds for investments in renewables self-consumption, hydrogen, energy efficiency, carbon capture and ISA, the Colombian power transmission company and road infrastructure builder majority-owned by the oil producer.

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In the next three years, investments totalling close to COP 4.1 trillion will enable Ecopetrol to incorporate 900 MW of renewable energy, produce over 50,000 tonnes of low-carbon hydrogen, reduce CO2 emissions by almost 400,000 tonnes and make progress with studies into carbon capture, use and storage (CCUS), the company said.

Additionally, ISA is to invest close to COP 5.4 trillion to build 9,657 kilometres of power transmission lines by 2025, of which 6,227 kilometres would transport non-conventional renewable energy.

Ecopetrol said that close 66% of its investments next year would go towards projects in Colombia. The remainder will be invested in the company's businesses and interests in the US, Brazil, Peru and Chile.

(COP 1,000 = USD 0.209/EUR 0.197)