Advertisement
U.S. markets close in 4 hours 37 minutes
  • S&P 500

    5,254.42
    +5.93 (+0.11%)
     
  • Dow 30

    39,753.33
    -6.75 (-0.02%)
     
  • Nasdaq

    16,402.26
    +2.74 (+0.02%)
     
  • Russell 2000

    2,126.13
    +11.78 (+0.56%)
     
  • Crude Oil

    82.53
    +1.18 (+1.45%)
     
  • Gold

    2,233.30
    +20.60 (+0.93%)
     
  • Silver

    24.97
    +0.22 (+0.88%)
     
  • EUR/USD

    1.0804
    -0.0026 (-0.24%)
     
  • 10-Yr Bond

    4.1930
    -0.0030 (-0.07%)
     
  • GBP/USD

    1.2636
    -0.0002 (-0.02%)
     
  • USD/JPY

    151.2310
    -0.0150 (-0.01%)
     
  • Bitcoin USD

    71,217.90
    +1,887.71 (+2.72%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,973.78
    +41.80 (+0.53%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Can Eni's (E) FRI-EL Biogas Acquisition be a Game Changer?

Eni S.p.A. E recently agreed to acquire FRI-EL Biogas Holding to boost its carbon footprint reduction efforts. Ecofuel, a subsidiary of Eni and FRI-EL Greenpower, an electricity producer from renewables, struck the deal.

The acquiree has 21 biogas-to-electricity plants along with an OFMSW processing facility that processes organic fraction of municipal solid waste. Eni is planning to convert the plants to produce biomethane. Once the process concludes, the facilities are expected to supply more than 50 million cubic meters of biomethane per annum to the network.

Financial details of the deal, which can make Eni a major biomethane producer in Italy, are yet to be disclosed. The move is expected to boost the energy major’s growth in the circular economy, a regenerative concept that focuses on utilizing waste to create final products for consumption. The acquisition of FRI-EL Biogas Holding will be a noteworthy milestone in Eni’s strong focus on a greener future, abiding by the Paris Agreement. The integrated energy player is on track with the plan of full decarbonization of products and processes by 2050.

Notably, the company is expected to install a total of 4 gigawatts of wind and solar energy across the globe by 2024. Moreover, its power generation capacity will likely rise to 15 GW by 2030 and 60 GW by 2050. Markedly, it created a new joint venture, GreenIT, with CDP Equity, where €800 million will be invested over five years in renewables. In fact, the firm is well-positioned to capitalize on the gigantic demand for cleaner energy.

Price Performance

Eni’s shares have surged 51.1% in the past six months compared with a 50.8% rise for the industry.

Zacks Rank and Other Stocks to Consider

Currently, the stock sports a Zacks Rank #1 (Strong Buy).

Other top-ranked players in the energy space include DCP Midstream, LP DCP, Frank's International N.V. FI and Royal Dutch Shell plc RDS.A, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DCP Midstream’s bottom line for 2021 is expected to jump 45.3% year over year.

Frank's International’s bottom line for 2021 is expected to rise 46.7% year over year.

Shell’s bottom line for 2021 is expected to increase 188.7% year over year.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Eni SpA (E) : Free Stock Analysis Report

Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report

Franks International N.V. (FI) : Free Stock Analysis Report

DCP Midstream Partners, LP (DCP) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement