Eni SpA E has inked an agreement with COREPLA, the National Consortium for the Collection, Recycling and Recovery of Plastic Packaging. The deal relates to the initiation of research projects to produce hydrogen from non-recyclable plastic packaging waste.
The main aim of the deal is to evaluate the introduction of research projects to produce hydrogen and high-quality biofuels from plastic waste. The working group will assess the market behavior toward non-mechanically recyclable packaging over the next few years. In sync with new EU directives, the group will examine the types of waste that can be used to develop a constructive, pioneering circular economy process and optimize recovery.
In sorted waste, plastic packaging is separated and sent for recycling so that it can be reprocessed through conversion into chips or grains. Subsequently,the plastic becomes the raw material for generating new products. However, not every material can be reused. Currently, plasmix is the collective name for the different plastics that are used in packaging that have no use in the market of recycling. Hence, the bulk of these materials will be utilized for energy recovery, while a small portion will be used for landfill. With the latest agreement, some of this material can now be recycled and altered into new raw material.
Based on research and newly developed technologies, Eni is strengthening and developing its strategy to apply the principles of the circular economy to the business. Since 2014, courtesy of the Ecofining™ patent, Eni has been producing high-quality biofuels from used cooking and frying oil, animal fat as well as other non-edible waste in Porto Marghera and also in Gela.
Hydrogen is avital part of the production process, as it neutralizes the oxygen in vegetable oil and alters the triglycerides into paraffins and isoparaffins, thereby completely eliminating the sulphur, nitrogen and polyaromatic hydrocarbons from the biofuel. Another significant element of the Eni circular economy is Waste to Fuel. Toconduct test production of bio-oil and biomethane from the organic fraction of municipal solid waste (OFMSW), a pilot plant has been constructed in Gela. Outcome from this test will be vital in the announced production on an industrial scale at the plants in Ravenna, Porto Marghera and other potential industrial sites in Italy and other countries.
Zacks Rank & Key Picks
Eni currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector can opt for some better-ranked stocks as given below.
CrossAmerica Partners L.P. CAPL is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The company delivered average positive earnings surprise of 655% in the last four quarters. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SEACOR Holdings, Inc. CKH is a diversified holding company, mainly focused on domestic and international transportation, logistics as well as risk management consultancy. The company delivered average positive earnings surprise of 49.6% in the trailing four quarters. The stock currently has a Zacks Rank #2 (Buy).
San Antonio, TX-based NuStar Energy L.P. NS is a midstream energy company. For 2019, the bottom line, which has witnessed three upside revisions in the past 60 days, is expected to rally 64.2% year over year. The company currently holds a Zacks Rank #2.
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