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Eni (E) Proceeds With Livorno's Conversion to Biorefinery

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Eni SpA (E - Free Report) confirmed its decision to establish Italy’s third bio-refinery in Livorno, marking a significant step in the company’s commitment to decarbonization and meeting ambitious environmental targets.

Eni is set to convert its existing 84,000-barrel-per-day conventional crude oil refinery in Livorno into Italy's third biorefinery. The Livorno refinery’s transformation aligns with the company’s broader goal of achieving carbon neutrality by 2050 and increasing its bio-refining capacity from 1.65 million tons per year to more than 5 million tons per year by 2030.

As part of this initiative, Eni has halted the import of crude oil and initiated the shutdown of the Livorno refinery's lubricant production lines and topping plant. The decision underscores the company's dedication to sustainable practices and signals a shift toward bio-based alternatives in the energy sector.

The Livorno industrial site's conversion follows successful transformations in Porto Marghera (2014) and Gela (2019), highlighting Eni's commitment to implementing environmentally responsible solutions across its operations.

Preparatory work for the construction of three bio-refining plants at the Livorno site is underway, with Eni set to commence formal construction pending final regulatory approvals. The completion and commissioning of the refinery's transformation are expected by 2026.

The bio-refining plants at Livorno will play a crucial role in processing various biogenic feedstocks, primarily vegetable waste and residue. This sustainable approach aims to produce HVO diesel, HVO naphtha and bio-LPG, contributing to the reduction of carbon emissions and reliance on traditional fossil fuels.

Fuel distribution in the Livorno area will be maintained through the import of finished and semi-finished products, ensuring a smooth transition during the refinery's transformation. Eni's commitment to sustainability extends beyond environmental considerations to encompass the economic resilience of the Livorno site, securing production capabilities and employment opportunities in the region.

Forecasts indicate a 65% global increase in demand for hydrogenated biofuels between 2024 and 2028, further justifying Eni’s growth strategy. The Livorno bio-refinery is poised to contribute significantly to meeting this growing demand, showcasing Eni's role as a key player in driving sustainable solutions in the energy sector.

The transformation of the Livorno industrial site represents a crucial step in achieving Eni's ambitious decarbonization goals, contributing to the global transition to cleaner energy alternatives. As the world grapples with climate change challenges, Eni's proactive approach underscores the pivotal role that major energy players can play in shaping a more sustainable future.

Zacks Rank & Stocks to Consider

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

Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vaalco Energy (EGY - Free Report) is an independent energy company principally engaged in the acquisition, exploration, development, and production of crude oil and natural gas.

The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $1.49. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. EGY’s earnings for 2024 are expected to surge 325.7% year over year.

Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.

The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 89 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. EGY’s earnings for 2024 are expected to soar 242.3% year over year.

Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.

The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. It has a Zacks Style Score of A for Growth and B for Value. OII’s earnings for 2024 are expected to surge 76.4% year over year.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

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