Ecopetrol S.A. EC, a Colombian majority state-owned energy company, has recently acquired a wind power project from Enel S.p.A. for a total consideration of $50 million. The wind power project, named the Windpeshi project, is situated in the northern province of La Guajira in Colombia.
Project Overview
The company stated that the total installed capacity of the project is approximately 205 megawatts (MW). The power generated from the wind project will support the Ecopetrol Group’s energy requirements, implying that EC will utilize the power generated for self-consumption. The wind project will boast 41 turbines, each having a capacity of 5 MW. The Windpeshi project is expected to generate approximately 1,006 gigawatt hours of power annually. Ecopetrol Group CEO Ricardo Roa mentioned that this is equivalent to nearly 8-9% of the Ecopetrol Group’s total energy needs.
Total Development Cost and Timeline
The total development cost of the Windpeshi project is estimated to be around $350 million, according to the Ecopetrol Group. The development costs are part of the Group’s broader investment plan. EC plans to start with the development process before year-end 2025, with commercial operations expected to begin by 2028.
Colombia’s Clean Energy Targets
Under president Gustavo Petro, the Colombian government is working to shift from traditional fossil fuels like oil and gas toward a cleaner energy mix. Colombia aims to expand its portfolio of renewable sources, including solar and wind power, to contribute to the nation’s energy needs while supporting its energy-transition strategy. However, the country is facing several setbacks in advancing these renewable energy projects. Onshore and offshore wind projects in the north have faced resistance from indigenous communities, along with regulatory hurdles that have delayed the projects' construction and development.
EC’s Zacks Rank & Key Picks
EC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK, The Williams Companies, Inc. WMB, and Oceaneering International OII. While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, The Williams Companies and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. The company develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.
The Williams Companies, Inc. is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing and transporting natural gas and natural gas liquids. Williams boasts a pipeline system of more than 33,000 miles and is one of the largest domestic transporters of natural gas.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
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Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Ecopetrol S.A. (EC): Free Stock Analysis Report Flotek Industries, Inc. (FTK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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