LONDON: Zenith Energy Ltd. announced Thursday it has acquired a new solar project in Italy’s Puglia region and will restart production at a natural gas field, citing heightened geopolitical tensions and expected price increases.
The international energy company said the photovoltaic development project has an expected installed capacity of 10 megawatts peak. The site includes land for an integrated 4-megawatt battery energy storage system to help optimize power dispatch and support the local grid.
The acquisition is in the development stage, with the company expecting it to reach ready-to-build status by February 2027. The total consideration is €1,050,000, which will be paid once all required permits are secured and that milestone is achieved.
The purchase advances Zenith’s goal of building a solar development portfolio exceeding 200 MWp by the end of 2026. Following this and other recent acquisitions, the company’s solar pipeline has grown to approximately 135.5 MWp. Zenith said it has commissioned an updated independent valuation of the expanded portfolio, after a December valuation of its 110.5 MWp pipeline placed its worth at €27.5 million upon reaching ready-to-build status.
In a separate move, Zenith said it has decided to recommence production at the Sant’Andrea gas field in Italy. The company cited ongoing conflicts affecting gas-producing countries, which it expects will lead to a significant increase in natural gas and electricity prices. Upon reactivation, the field is expected to produce approximately 40,000 cubic meters of natural gas per month, which will be sold into the Italian national grid.
“We are delighted to further strengthen our solar portfolio in one of the most attractive solar development markets in Europe,” Chief Executive Officer Andrea Cattaneo said in a statement. “The ongoing geopolitical tensions also underscore the strategic importance of secure natural gas supply and reliable electricity generation in Europe.”
Zenith’s strategy involves advancing projects to ready-to-build status and selectively selling some assets to fund the development of others into production, which would generate long-term electricity revenue.
Zenith Energy Ltd. is listed on the London Stock Exchange, the Euronext Growth in Oslo, and the Spotlight Stock Market in Sweden.