Origins
Erg was founded by Edoardo Guida Garrone in 1938, founding a company for the refining of petroleum and tar.[9][10] The company, which became a refinery after World War II, chose as its trademark a die (from “Dado,” an affectionate diminutive of Edoardo)[9] on whose faces is reproduced a three-letter acronym, the initials of Edoardo Raffinerie Garrone, or Erg.
Postwar period
In 1947, production began at the Genoa San Quirico Refinery. Immediately after World War II, in a country in need of reconstruction, energy needs made oil a key energy source. Thanks to the favorable economic situation and the optimal geographical location of the plants, Erg's business experienced rapid development.[11]
In 1956, Erg signed an agreement to refine the oil on behalf of BP which, thereafter and for a number of years, will hold a minority interest in Erg's share capital.[11][10]
In 1963, 6.5 million tons of processed material was reached.[11] During the 1960s and 1970s the company started to build some oil refineries and pipelines in Italy. Specifically, in 1967 Erg built a major pipeline in Arquata Scrivia;[9] in 1971, it entered with other private groups into the shareholding structure of ISAB (Industria Siciliana Asfalti e Bitumi), a company created to build a large refinery in Sicily that began production in 1975 in Priolo Gargallo.[12][11]
Erg network development
After developing business mainly in the refining sector, the Genoa-based company also began to grow nationally in the fuel distribution sector through its subsidiary Erg Petroli. In 1984, it acquired the 780 petrol stations network of Elf's Italian subsidiary and in 1986 1.700 stations owned by Chevron. Thus grows the Erg Network, which adopts the brand characterized by the three rampant panthers.[9]
In 1987 the company also finalized an agreement with BP to distribute the British company's lubricants.[13][14]
Collaboration with Elf and BP to sell lubricants (produced by Erg's own plants in Savona)[15] continued until 1996, when its own product was launched.
From oil to multi-energy company
In 2000, Erg began producing electricity through ISAB Energy (a joint venture with Edison Mission Energy), with a capacity of 528 MW and an estimated production of about 4 billion kWh per year; the goal was to build Italy's first heavy oil regasification plant for electricity production. With this operation, Erg, from an oil company, becomes a “multi-energy” company.[18]
A few years later, in October 2002, Erg Raffinerie Mediterranee was founded, a company entrusted with the management of one of the refining hubs in Europe, achieved through the union and integration of Erg's ISAB Refinery with the former Agip refinery, both in Priolo.[9] The integration of the two refineries took place through the construction of an oil pipeline system and other upgrades and improvements to production efficiency and environmental compatibility.[19]
In 2005, Erg's stock joined the Blue-Chip segment of the Italian Stock Exchange, following the stock's significant increase in market capitalization.[20]
In 2006, Erg acquired EnerTAD, a company listed on the Milan Stock Exchange that built and operated wind farms.
Growth of renewables and divestment of oil business
From 2008, Erg started a profound transformation process that led it to divest from the oil sector in order to focus investments on renewables. In 2010, Total Italia and Erg Petroli merged to create TotalErg, a joint venture between Total (49%) and Erg (51%).[26]
Then, in early 2011 Erg reduced its share in ISAB from 51% to 40%.[27] Two years later Erg completed the exit from the refining sector.[28][29]
In the meantime (since 2010) Erg grew in the Italian wind power sector becoming the leading wind operator in Italy in 2013.[30][31]
Transition to a pure renewable model and entry into the US market
Starting in 2021, Erg completed its transformation into an exclusively renewable operator, focusing on wind and solar power generation, with the divestment of its hydro and thermoelectric assets.[39]
Specifically, in August 2021 the company signed an agreement with Enel Produzione to sell the entire capital of Erg Hydro S.r.L.,[40] while in June 2023 it signed an agreement with Achernar Assets to sell Erg Power S.r.l., owner of the Priolo Gargallo natural gas-fired power plant.[41]
In June 2022, San Quirico, the holding company that has control over Erg, and IFM Investors signed a long-term strategic partnership. Under the agreement, the new holding company SQ Renewables Spa was established. IFM and its affiliates acquired an initial 35 percent stake in the new holding company, which in turn holds about 62.5 percent of Erg. This was the first direct investment in Italy for IFM.[7] In April 2024, as per the agreement, IFM increased its stake in SQ Renewables to 49%.[42]
Erg Mobile
Erg Mobile was an Italian Mobile Virtual Network Operator owned by the oil company Erg, later TotalErg.
Operational since 15 April 2009,[48][49] it was the result of a commercial agreement between Erg and Vodafone (the service, launched as ESP MVNO, in fact uses the GSM/GPRS/UMTS network of the British company).
The Erg Mobile service was available for subscription, from April 2010, throughout the entire Erg, then TotalErg, distribution network.
The area code used was 377-5.
The main feature of Erg Mobile was the ambivalent one of giving advantages on fuel to those who use Erg Mobile and on top-ups to those who get fuel at service stations.
