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Eni's (E) GreenIT Advances Toward Italy's Renewable Future

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Eni SpA (E - Free Report) has taken a momentous step toward advancing Italy’s decarbonization efforts through its subsidiary, GreenIT.

The collaboration between GreenIT and Galileo aims to develop eight solar projects across Italy, located in the southern, central and northern regions. The projects, boasting a combined capacity of 140 megawatts (MW), are poised to meet the electricity needs of more than 90,000 households.

Galileo, tasked with developing these solar projects, brings to the table a robust pipeline of more than 2 gigawatts (GW) of renewables in Italy.

GreenIT, equipped with the necessary attributes, is poised to be the ideal entity for the construction and operation of the portfolio of projects developed by Galileo. The projects' quality aligns well with GreenIT's capabilities, making it the optimal home for their realization.

The eight solar projects are set to become operational as part of GreenIT’s plan between 2023 and 2027. During this time, the joint venture plans to invest €1.7 billion in renewable energy. The strategic timeline places the initiative at the forefront of Italy’s push for more renewable energy, coinciding with a recent increase in solar PV installations after a period of lower numbers over the past decade.

In 2022, Italy saw the installation of 2.5 GW of solar PV, and it was anticipated that an extra 4 GW would be added in 2023. This resurgence signals a renewed focus on solar energy, marking a return to the levels seen in the early 2010s.

The efforts of Eni’s GreenIT and Galileo came at a pivotal moment, contributing not only to Italy’s energy landscape but also resonating with Europe’s renewable energy sector.

As the world pivots toward sustainable energy solutions, partnerships like GreenIT and Galileo become crucial catalysts in accelerating the transition. Beyond meeting domestic energy needs, the latest collaboration has far-reaching implications, showcasing the potential for impactful change across the broader European renewable energy sector.

Eni's commitment through GreenIT reinforces the importance of strategic partnerships in building a sustainable and resilient energy future. The agreement stands as a crucial step, setting the stage for a significant contribution to the country’s renewable energy landscape.

Zacks Rank & Stocks to Consider

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

Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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, the company has a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.

Murphy USA’s (MUSA - Free Report) unique high-volume and low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment.

MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. As part of this initiative, the fuel retailer recently approved a repurchase authorization of up to $1.5 billion following the completion of the existing $1-billion mandate. The move underscores MUSA’s sound financial position and commitment to rewarding its shareholders.

Enbridge Inc. (ENB - Free Report) has the longest and most advanced crude and liquid pipeline system in the world. In Canada, the company is touted to be the largest natural gas distributor. Hence, a significant portion of its earnings is generated from transportation operations, driven by a string of long-term contracts.

Enbridge has a strong commitment to returning capital to shareholders. The company consistently outperforms the composite stocks within the oil energy sector by offering higher dividends. Over the majority of the last five years, ENB consistently yielded higher dividends than its sector counterparts.


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