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Eni (E) Signs Agreement to Decarbonize the Aviation Industry

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Eni SPA (E - Free Report) entered an agreement with Aeroporti di Roma (“ADR”) to support the decarbonization of the aviation sector and accelerate clean energy transitions at airports.

The global aviation industry is responsible for about 2% of the world’s total carbon dioxide (CO2) emissions. Increasing awareness regarding the social and environmental impacts of the airline operations is a driving factor for the transition toward a low-carbon economy. Hence, airport operators and airlines are under pressure to tackle aviation's carbon footprint in order to contribute to the EU's goal of reducing net-carbon emissions by 55% from 1990 levels by 2030.

Eni and ADR will work on decarbonization and digitalization projects for ADR-managed airports, which include Rome's Fiumicino and Ciampino. Beside this, ADR aims to introduce sustainable fuels for aviation (SAF) and ground handling at Rome airports in the months ahead. This will produce less CO2 emissions compared with fossil fuels.

A joint program will be launched for the development of sustainable mobility and distribution services for end customers. The program will also focus on energy integration projects, in line with advanced transition and digitalization models.

Since 2014, Eni has been producing hydrotreated vegetable oil biofuel at its Venice and Gela bio-refineries with the help of its Ecofoning technology. The company has been converting its refineries in Italy to produce biofuels as part of its plans to become carbon-neutral by 2050.  Eni's net-zero emission strategy will make it possible to supply a variety of decarbonized products to help the aviation sector recover as a greener, more sustainable industry.

Company Profile & Price Performance

Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.

Shares of the company have outperformed the industry in the past six months. The stock has gained 7.1% compared with the industry’s 1.3% growth.

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Zacks Rank & Stocks to Consider

Eni currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the energy space are Royal Dutch Shell plc (RDS.A - Free Report) , RPC, Inc. (RES - Free Report) and Cheniere Energy, Inc. (LNG - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shell’s earnings for 2021 are expected to increase 13.7% year over year.

RPC’s earnings for 2021 are expected to surge 511.1% year over year.

Cheniere’s earnings for 2021 are expected to grow 119.7% year over year.

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RPC, Inc. (RES) - free report >>