The Eurnekian Group is Set to Make Their First Renewable Energy Investment, But Not in Argentina

Spain: Corporacion America will invest $112 million in the construction of an Ammonia factory in Burgos, Spain. According to Hugo Eurnekian, CEO of the oil business Compaa General de Combustibles, the plant will be fueled by solar or wind energy. The "green" Ammonia would be sold to a company that makes animal feed starting in 2027. Hydrogen was extracted from water in a method powered by renewable energy. CGC is to drill a record number of wells this year after purchasing new oil assets in 2021.

It will invest US$ 110 million in a project including wind and Hydrogen energy. Why did you prefer to launch the new company abroad?

One of the wealthiest families in Argentina, with business ties to the oil industry, will make its first significant investment in the switch to sustainable energy. The holding firm Eduardo Eurnekian created, Corporation America International, will invest $112 million to build an Ammonia plant in Burgos, Spain.

According to Hugo Eurnekian, CEO of the oil company Compania General de Combustibles, the plant will be fueled by solar or wind energy. The "green" Ammonia would be sold to a company that makes animal feed starting in 2027. Hydrogen was extracted from water in a method powered by renewable energy. The choice positions the oil company in the upcoming energies and aims to maximize Argentine projects related to Vaca Muerta's unconventional hydrocarbons. Dow Chemical recently invested US$200 million in the oil company through a bond convertible into shares.

According to Eurnekian, who cited a long range of potential options, ranging from synthetic fuels to thermal energy with carbon capture. Aim to have a significant impact on the process. Eduardo Eurnekian, who formed Corporacion America, has spent at least 50 years navigating the shifting local and global political landscapes. The 90-year-old businessman is passing the torch to the next generation, including his 40-year-old nephew Hugo. The family, which expanded from the textile industry, now runs practically all domestic airports as well as several international ones.

Only ten years after purchasing CGC to join the oil and gas industry, Corporation America has seen a reversal. It currently owns 70% of the stock, but if Dow decides to use its option to convert the bonds it recently purchased into shares, its holdings could decrease. The Eurekaians intend to switch to green energy, but fossil fuels will still be used for a very long time. Three horizontal wells in the Palermo Aike field in Santa Cruz are among the record-breaking number of wells that CGC, which purchased additional oil fields in 2021, expects to drill this year. These wells could push the boundaries of unconventional oil and gas extraction.

CGC aims to launch its Hydrogen business in Europe because the market there is more developed than in Latin America for developing renewable energy parks and selling their output. Argentina's Patagonia is one of the best regions in the world for converting wind energy into power due to its large coastline and plains. Many businesses are considering building wind farms to make Hydrogen.

The plan is to do a first pilot in Europe so that can comprehend the transition process. CGC will use the money from the bond sale to Dow to pay down debt that is due in 2024 as it tries to take advantage of reduced rates to stabilize its finances before the election.

The agreement also provides Dow the opportunity to purchase gas from CGC for its petrochemical facilities. In return, Dow grants CGC the right to acquire the gas it generates in the Vaca Muerta formation. Eurnekian thinks that despite the presidential election, political parties from all sides of the aisle agree to promote the energy sector because of its export potential to earn money in hard times.

The macroeconomic policies and timing of the next administration's implementation of such policies will determine how quickly the economy grows. The CGC does not want to create LNG export projects. In its capacity as a shareholder in Transportadora de Gas del Norte (TGN), it is primarily concerned with sending gas through pipeline to Chile and, in the future, to Brazil via Bolivia, should the pipeline that currently transports the fluid from the North be destroyed.