bneGREEN: Croatia’s ENNA to launch IPO, invest €1bn in green energy

bneGREEN: Croatia’s ENNA to launch IPO, invest €1bn in green energy
ENNA plans to focus on solar and renewable energy generation.
By Denitsa Koseva in Sofia June 2, 2023

Croatian investment group Energia Naturalis (ENNA) said on June 1 it is preparing to launch an initial public offering (IPO) and to invest at least €1bn in local green projects.

ENNA said that the process of entering the capital markets is expected to last five years. ENNA is considering launching its IPO on the Zagreb Stock Exchange among other options.

“This continues the process of changing the corporate structure and diversification of business that ENNA Group has been implementing for the last six years, investing in new business segments and strengthening divisions whose operations are fully aligned with the objectives of the European Union in achieving a low-carbon environment,” ENNA said in the press release on its website.

The focus of the company remains exclusively on renewable energy sources, transport and logistics and food, and in the future it will focus even more heavily on the values of energy independence, sustainability and self-sufficiency in food production and distribution.

Last year, ENNA launched a new strategic period in which it intends to implement a strong investment cycle. 

“The company is developing major projects in the segment of renewable energy sources, primarily solar and geothermal energy sources,” it said.

ENNA will also continue investments in the development of transport and logistics through rail cargo transport and ports, especially focusing on the strategically important Rijeka Gateway project, which aims to become the new Central European logistics hub and the most important container terminal in the Adriatic. 

Rijeka Gateway is a joint project of ENNA Logic and APMT, a company that is part of Maersk Group. The investment in that project is estimated at €480mn. When completed, it is expected to bring more than 1mn new container units to the future terminal in the Port of Rijeka, which will have a direct positive effect on the state budget.

The company’s ENNA Opskrba division, which has specialised in trading of green electricity, has been tasked with further developing that sector. ENNA also intends to implement projects related to energy management services and to sign partnership deals with global companies, it said.

ENNA’s investment programme comes as the Croatian government is planning to launch subsidies promoting renewable energy production. The €60mn programme will be backed by the EU's Modernisation Fund and aims to encourage companies to construct photovoltaic plants, biomass- and biogas-fired power plants and energy storage systems to reduce reliance on external energy sources.

The initiative is expected to reduce greenhouse gas (GHG) emissions by 60,000 tonnes per year (tpy), increase renewable electricity capacity by 80 MW and save 140,000 MWh per year in energy costs.

That programme is the first of a €1bn investment cycle promoting the green transition. The ministry also intends to launch an €80bn public call for energy efficiency and high-efficiency cogeneration in the processing industry.