Eni SpA E has inked an agreement with the Italian Biogas Consortium (CIB) to support the production of advanced biomethane using animal waste, agro-industrial byproducts and dedicated winter crops. The product, which requires investment in technology and research, will be used in the transport sector and reflects the company’s effort toward protection of environment.
The agreement will provide new prospects to the consortium member companies. The members will be able to initiate business projects that are expected to culminate into partnerships. Exhaustive assessment with the members of commercial and industrial programs is also a part of the agreement. The current method of biogas production can be used to generate electricity and thermal energy. The method can also yield refined products that can be employed as a fuel for road transport in the form of compressed gas or liquefied natural gas.
A team will be formed to occasionally evaluate as well as identify the most competent and suitable prospects for alliance. By 2022, Eni aims to gather about 200 million cubic meters of biomethane. The product can be produced by CIB members through the consolidation of methane generated as well as produced in agricultural and livestock farming processes. The agreement will result in lower atmospheric emissions and a more competitive primary sector.
Biomethane is a valuable energy resource that reduces greenhouse gas emissions and other contaminants. It is also a factor in the economic and industrial development of land through efficient use of the supply chains of the agricultural and agri-food sectors. Agro-energy sources are a vital addition to the income of agricultural businesses.
The agreement encourages the refinement of biomethane biogas in total association with many agricultural and livestock companies in the consortium. For Eni, it marks another stride in the production of advanced biofuels. This is in sync with the renovation of the Venice and Gela bio-refineries.
Zacks Rank & Key Picks
Currently, Eni carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Antero Resources Corporation AR, CrossAmerica Partners L.P. CAPL and SEACOR Holdings, Inc CKH, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids as well as oil resources in the Appalachian Basin. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.
CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The partnership delivered an average positive earnings surprise of 452.2% in the last four quarters.
SEACOR Holdings is a diversified holding company, mainly focused on domestic and international transportation, logistics as well as risk management consultancy. The bottom line for 2019 is expected to inch up 1.7% year over year. The company delivered an average positive earnings surprise of 20.5% in the trailing four quarters.
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