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Eni (E) and Snam Emphasize the Importance of CCS Project, Italy

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Eni SpA (E - Free Report) and gas grid operator Snam state that carbon capture and storage (CCS) technology is essential to ensure the survival and competitiveness of industries like steel, cement and chemicals in Italy, per a Reuters report.

In order to develop the first CCS project in Italy, offshore the city of Ravenna, the two companies formed a joint venture last year in December.

Approximately 16 million standard tons of carbon dioxide, or roughly half of the country's net annual emissions from its most carbon-intensive industries will be stored annually at this potential hub in the Adriatic Sea, per the report. According to the companies, the project may aid in decarbonizing gas-fueled power stations and make it feasible to produce low-emission hydrogen, thereby complementing the energy transition goals.

According to the two companies, the establishment of the first CCS hub offers Italy the chance to become a pivotal player for carbon storage in Southern Europe. They urged the government to define a competitive framework that’s capable of attracting investments.

Carbon capture and storage is a combination of technologies that captures and stores carbon dioxide, produced by industrial processes, deep underground, preventing its release into the atmosphere.

While presenting the study at the Cernobbio 2023 business conference, Snam’s chief executive Stefano Venier stated that several high-emission companies located around the French city of Marseille have expressed interest in the project.

Several depleted reservoirs in the Mediterranean Sea might be converted by Italy into carbon storage sites, increasing the capacity offered by the Ravenna hub.

Zacks Rank & Key Picks

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

Some better-ranked players in the energy sector are USA Compression Partners, LP (USAC - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and Global Partners (GLP - Free Report) and Evolution Petroleum Corporation (EPM - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

USA Compression Partners is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower. USAC has witnessed an upward earnings estimate revision for 2024 in the past 30 days.

Global Partners is a Delaware limited partnership, formed by affiliates of the Slifka family. The partnership owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. GLP is one of the largest wholesale distributors of distillates. It has witnessed an upward earnings estimate revision for 2024 in the past 30 days.

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 2024 in the past 60 days.

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