Ecopetrol S.A. (NYSE: EC) is reportedly analyzing its potential direct participation in the Andean country’s first-ever offshore wind auction.

The government of President Gustavo Petro, Colombia’s first leftist leader, stated that it wants to reduce the Andean country’s dependence on fossil fuels along with ensuring energy self-sufficiency, reported Reuters.

The bidders in the auction for concessions off the country’s Caribbean coast are mandated to demonstrate some sort of partnership deal with a public or mixed-ownership company in order to be awarded a concession.

The energy minister Andres Camacho told Reuters in December that potential private bidders will be able to choose from various companies with public participation.

The report quoted Colombia’s majority state-owned energy company as saying, “Ecopetrol is carrying out the technical, economic and legal analyses of its potential participation in the offshore wind auction process.” 

“Participating in the offshore wind auction will allow us to access reliable renewable energy to leverage the entry of green hydrogen projects and their derivatives.” 

The company disclosed that they are discussing potential partnerships to develop offshore wind projects with several companies, as per the report.

The auction process will be overseen by the government’s National Hydrocarbons Agency (ANH) and the registration deadline is June 21, 2024.

Investors can gain exposure to the stock via First Trust Indxx Global Natural Resources Income ETF (NASDAQ:FTRI).

Price Action: EC shares are up 0.95% at $11.65 at the last check Monday.