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Eni (E) Inks Accord to Broaden US Clean Energy Exposure

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Eni SpA (E - Free Report) has agreed to expand exposure to clean energy business in the United States. The company’s joint venture arm, Novis Renewables Holdings, LLC , has decided to spend $32.5 million on acquisition of the wind and solar business of Italian renewable energy firm Building Energy in America.

The assets to be acquired are operational wind and solar projects, with a total capacity of 62 megawatts (MW) along with several wind projects – having total power generation capacity of up to 160 MW. The integrated energy firm expects this acquisition to broaden its footprint in U.S. solar energy to 112.5 MW capacity. Moreover, the company expects its energy generation capacity from renewables to increase to 1 gigawatt (GW) by 2023 in the United States.

Eni is actively focusing on clean energy since it has been a challenge for energy majors to provide sustainable energy while reducing greenhouse gas emissions. Notably, several oil and gas energy majors are setting ambitious goals to address the issue of climate change. British energy giant BP plc (BP - Free Report) is targeting to become a net zero emissions company by 2050. As a result, in the coming years, the integrated energy player is planning to boost investments in non-oil and gas operations.

Royal Dutch Shell plc (RDS.A - Free Report) is another key energy firm planning to become a net zero emission energy firm by 2050. Importantly, the company intends to slash the carbon intensity of the products it will sell by roughly 30% by 2035. By 2050, the company plans to lower the carbon footprint by 65%.

Headquartered in Rome, Italy, Eni currently carries a Zacks Rank #3 (Hold). Meanwhile, a better-ranked player in the energy space is Cimarex Energy Co (XEC - Free Report) , holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cimarex Energy has seen upward earnings estimate revisions for 2020 in the past 30 days.

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