About the Company
Ecopetrol is a leading energy group in Latin America. It has three strong lines of business: Hydrocarbons, Low Emission Solutions, and Energy Transmission. Ecopetrol has an integrated business across all links of the hydrocarbon value chain (exploration, production, transportation, refining and marketing) and linear infrastructure, both in energy transmission and road concessions, and expects to continue diversifying towards businesses that allow it to further reduce its carbon footprint and advance towards its goal of being a net-zero carbon company by 2050 (scopes 1 and 2).
Ecopetrol is the largest company in Colombia and one of the most relevant integrated energy companies in Latin America, with a presence primarily in Colombia and activities in the U.S. (U.S. Gulf of Mexico and Permian Basin), Brazil, Mexico, Peru, Chile and Bolivia. In Colombia, Ecopetrol is responsible for more than 60% of the hydrocarbon production, transportation, logistics, and hydrocarbon refining systems, and it holds a leading position in the petrochemicals and gas distribution segment. Through ISA, Ecopetrol’s energy transmission company, we have a strong position in the electric power transmission business, toll roads and telecommunications sectors throughout Latin America.
Ecopetrol Group’s long-term strategy looks forward to 2040, also referred to as “Energy that Transforms”, being the first company in the oil and gas industry in Latin America to disclose a roadmap for the next 20 years. The strategy fully addresses current environmental, social, and governance challenges, while maintaining its focus on generating sustainable value for all its stakeholders. The objective of this long-term strategy is to consolidate an agile and dynamic organization that promptly adapts to the changes faced by the energy industry and the challenges of a world that moves forward generating and using cleaner sources of energy while anticipating growth opportunities and gaining leadership in the American continent. “Energy that Transforms” is expected to position the Ecopetrol Group as an integrated energy group with the ambition to diversify into low-emission businesses that allow it to continue reducing its carbon footprint and achieve net-zero carbon emissions (scopes 1 and 2) and a 50% reduction in total emissions (scopes 1, 2 and 3), both by 2050. This strategy comprises four strategic pillars: (i) Grow with the Energy Transition, (ii) Generate Value through Technology, Environmental, Social and Governance (TESG), (iii) Cutting-edge Knowledge, and (iv) Competitive Returns.
The diversification towards low-emission businesses in the long term contemplates: (i) investments of US$8.3 billion in current businesses and geographies and US$2.2 billion in new geographies, and (ii) having non-conventional renewable energies achieve a share of between 25% and 40% in our self-generation matrix by 2040. The aforementioned is expected to be supported by a gradual incursion into emerging businesses that are aligned with new global trends that seek to mitigate the effects of climate change, such as the production of low-carbon hydrogen as an energy source, Carbon Capture, Utilization, and Storage (CCUS), and Natural Climate Solutions (NCS). The value proposition includes diversifying into low-emission businesses, for which more than US$ 200 million are expected to be invested over the next three years, in green hydrogen projects in the Cartagena and Barrancabermeja refineries, and in CO2 capture projects through both emerging technologies and NCS projects.