Portuguese oil & gas group Galp wants to build 10GW renewable power portfolio by 2030 as it shifts up to 15% of investments to the sector, it said on Tuesday.
Galp said renewables represent “a natural hedge to our Iberian activities, aligned with the global electrification trend and with the transition path to reduce our carbon intensity”.
The focus of the 10GW portfolio-building will be on Iberia “but looking at opportunities in other geographies complying with our investment criteria”.
Galp recently acquired a 2.9GW clutch of Spanish PV projects that it claimed makes it the “biggest Iberian solar player”.
The group said: “With the remaining solar projects under development in Iberia, Galp’s overall capacity is expected to reach 3.3GW by 2023. Equity returns from this portfolio are expected at above 10%.”
The Portuguese fossil group joins a growing list of oil & gas players targeting significant renewables portfolios over the next decade.
The new CEO of UK-based supermajor BP last week said it expects “to invest more in low carbon businesses — and less in oil and gas — over time”.