Eni (E) Collaborates With Maritime Majors for Decarbonization
Eni SpA E joined forces with various other companies, including three of the largest businesses in the maritime sector, and presented a document titled "The route to net zero. Decarbonizing the maritime sector". Some of its partners are Assarmatori, Confitarma, Unem, Assocostieri and RINA.
In order to develop a common strategy, the contributors monitored the work of 40 experts who have been working in unison since last March. The end result was the drafting of a strategic orientation document that started with an examination of the technological evolution of engines and the accessibility of low-carbon energy sources in terms of infrastructure.
According to Eni, 12 billion tons of goods are transported annually by more than 100,000 merchant ships. Currently, 90% of goods are transported by sea. It is estimated that the maritime sector is responsible for around 3% of global greenhouse gas emissions. Approximately 75% of external and 36% of internal EU trade are conducted via nautical means.
In order to gradually achieve zero CO2 emissions and enable shipowners to meet the objectives set by the EU Commission, the sector requires short, medium and long-term solutions that are compatible with economic trends. Biofuels are an option for a short to medium-term solution.
Engine makers are prepared to create custom solutions for various fuel types. For new orders, shipowners are currently experimenting with single-fuel engines (along with technologies that capture carbon in solid form before combustion for LNG) and dual-fuel engines (using liquid or gaseous fuels like biofuels, methanol, and in the long-term ammonia and hydrogen).
According to Giuseppe Ricci, chief operating officer for Energy Evolution at Eni, the maritime sector is crucial for Italy's competitiveness and also for experimenting with technology that enables carbon neutrality by adopting solutions that further Eni’s goal to enable a just transition, based on three dimensions — environment, economy and society.
The initiative, he continued, was an inclusive example of collaboration among multiple players in the sector. For Eni, it is the first initiative to promote mature solutions like biofuels and test long-term solutions.
Zacks Rank & Key Picks
Eni currently carries a Zack Rank #4 (Sell).
Some better-ranked stocks in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and Murphy USA MUSA. While Evolution Petroleum sports a Zacks Rank #1 (Strong Buy), both NGL Energy Partners and Murphy USA carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing, and midstream. NGL has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward earnings estimate revision for 2023 and 2024.
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