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Eni (E) Boosts UK CCS Leadership With CCUS Market Launch
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Eni SpA (E - Free Report) expressed its support for the introduction of the UK Department for Energy Security and Net Zero’s CCUS Vision, aiming to enhance the competitiveness of the carbon capture, usage and storage (CCUS) market by 2035.
The CCUS Vision outlines the plan for the U.K. to shift the CCUS sector from the initial state-supported initiatives to a competitive market by 2035.
This vision encompasses the expansion of the HyNet Cluster, an initiative in which Eni plays a significant role as the operator for carbon dioxide (CO2) transport and storage.
The announcement underscores the U.K.’s leadership in advocating for carbon capture and storage (CCS) to achieve national decarbonization goals. With a £20-billion commitment, the country aims to enable the CCS industry to reach commercial scale, targeting the storage of 20-30 million tons of CO2 annually by 2030.
Additionally, the company is planning a second CCS hub — the Bacton Energy Hub — to decarbonize the Thames Estuary region. Eni has secured a license to store CO2 in the depleted Hewett gas field in the Southern North Sea.
HyNet and Bacton collectively have the ability to store 500 million tons of CO2, safeguarding jobs and promoting investment in new industrial supply chains. This will generate job opportunities and make a substantial contribution to the U.K.’s decarbonization goals.
The CCUS Vision timeline aims to reduce industry costs, facilitating decarbonization for challenging sectors. The U.K. government announced the Track-1 expansion of the HyNet CCUS cluster, which is expected to add 1.3-1.5 million tons of CO2 annually, achieving the full saturation of HyNet's Phase 1 by 2030.
HyNet is poised to become one of the world’s first low-carbon clusters, with an initial storage capacity of 4.5 million tons of CO2 per year, expanding to 10 million annually.
Eni, leveraging decades of gas storage experience, plans to convert some upstream assets to CO2 storage hubs. This initiative, aimed at cost-effective decarbonization, targets the industrial activities of Eni and third parties. The strategy includes projects in the U.K., Italy and Libya, and ongoing evaluations in the North Sea and Far East, ensuring competitive costs and rapid implementation.
Sunoco LP (SUN - Free Report) is among the biggest motor fuel distributors in the U.S. wholesale market, in terms of volumes. The Zacks Consensus Estimate for SUN’s 2023 and 2024 earnings per share (EPS) is pegged at $5.19 and $3.83, respectively.
Sunoco has a core competency in terms of its history of disciplined expense management. Over the past few years, the company has demonstrated a remarkable ability to control total operating expenses, with an annual growth rate of only around 2% since 2019.
The Williams Companies (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, and is important for future cash flows.
WMB’s debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying shareholders an attractive dividend yielding around 5%. Beside this, it has a share repurchase program worth $1.5 billion, thus highlighting its commitment to shareholders.
Ecopetrol S.A. (EC - Free Report) operates across various sections of the oil and gas industry, including the exploration, development and production of oil and gas; refining; transportation; and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The Zacks Consensus Estimate for EC’s 2023 and 2024 EPS is pegged at $2.32 and $2.41, respectively.
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Eni (E) Boosts UK CCS Leadership With CCUS Market Launch
Eni SpA (E - Free Report) expressed its support for the introduction of the UK Department for Energy Security and Net Zero’s CCUS Vision, aiming to enhance the competitiveness of the carbon capture, usage and storage (CCUS) market by 2035.
The CCUS Vision outlines the plan for the U.K. to shift the CCUS sector from the initial state-supported initiatives to a competitive market by 2035.
This vision encompasses the expansion of the HyNet Cluster, an initiative in which Eni plays a significant role as the operator for carbon dioxide (CO2) transport and storage.
The announcement underscores the U.K.’s leadership in advocating for carbon capture and storage (CCS) to achieve national decarbonization goals. With a £20-billion commitment, the country aims to enable the CCS industry to reach commercial scale, targeting the storage of 20-30 million tons of CO2 annually by 2030.
Additionally, the company is planning a second CCS hub — the Bacton Energy Hub — to decarbonize the Thames Estuary region. Eni has secured a license to store CO2 in the depleted Hewett gas field in the Southern North Sea.
HyNet and Bacton collectively have the ability to store 500 million tons of CO2, safeguarding jobs and promoting investment in new industrial supply chains. This will generate job opportunities and make a substantial contribution to the U.K.’s decarbonization goals.
The CCUS Vision timeline aims to reduce industry costs, facilitating decarbonization for challenging sectors. The U.K. government announced the Track-1 expansion of the HyNet CCUS cluster, which is expected to add 1.3-1.5 million tons of CO2 annually, achieving the full saturation of HyNet's Phase 1 by 2030.
HyNet is poised to become one of the world’s first low-carbon clusters, with an initial storage capacity of 4.5 million tons of CO2 per year, expanding to 10 million annually.
Eni, leveraging decades of gas storage experience, plans to convert some upstream assets to CO2 storage hubs. This initiative, aimed at cost-effective decarbonization, targets the industrial activities of Eni and third parties. The strategy includes projects in the U.K., Italy and Libya, and ongoing evaluations in the North Sea and Far East, ensuring competitive costs and rapid implementation.
Zacks Rank & Key Picks
Eni currently has a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP (SUN - Free Report) is among the biggest motor fuel distributors in the U.S. wholesale market, in terms of volumes. The Zacks Consensus Estimate for SUN’s 2023 and 2024 earnings per share (EPS) is pegged at $5.19 and $3.83, respectively.
Sunoco has a core competency in terms of its history of disciplined expense management. Over the past few years, the company has demonstrated a remarkable ability to control total operating expenses, with an annual growth rate of only around 2% since 2019.
The Williams Companies (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, and is important for future cash flows.
WMB’s debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying shareholders an attractive dividend yielding around 5%. Beside this, it has a share repurchase program worth $1.5 billion, thus highlighting its commitment to shareholders.
Ecopetrol S.A. (EC - Free Report) operates across various sections of the oil and gas industry, including the exploration, development and production of oil and gas; refining; transportation; and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The Zacks Consensus Estimate for EC’s 2023 and 2024 EPS is pegged at $2.32 and $2.41, respectively.