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Eni (E) Boosts UK's Decarbonization With HyNet North West

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Eni SPA (E - Free Report) received a significant boost in its decarbonization efforts in the United Kingdom, with the government granting a Development Consent Order (“DCO”) for the HyNet North West carbon dioxide (CO2) pipeline.

The decision enables Eni to proceed with constructing, operating, and maintaining a crucial infrastructure aimed at transporting CO2 from various capture plants to safe storage locations.

The HyNet North West project is a groundbreaking initiative, marking the first Anglo-Welsh cross-border application for a Nationally Significant Infrastructure Project to receive a DCO. The project's progression into the execution phase is anticipated, with a Final Investment Decision expected by September 2024.

At the heart of this initiative is the transportation of CO2 from industrial sites across northwest England and north Wales. The infrastructure will include both new and repurposed pipelines leading to Eni’s depleted natural gas reservoirs beneath Liverpool Bay, offering a secure and permanent solution for CO2 storage.

Eni's commitment to the UK market is reinforced by this project, particularly in the field of decarbonization. The company emphasizes the critical role of carbon capture in mitigating emissions from industries lacking efficient alternative solutions. The HyNet North West project is set to establish a significant new industry within the UK, enhancing Eni's position as a leader in providing decarbonization services at competitive costs.

Eni operates the transportation and storage of CO2 for five injector plants selected by the UK government. The HyNet system is designed to handle 4.5 million tons of CO2 annually in its initial phase, with potential expansion to 10 million tons per year post-2030.

The HyNet North West project is not only a step forward in environmental stewardship but also a significant economic catalyst. By facilitating the decarbonization of industries that are difficult to abate, it promises to preserve local jobs, attract new investments, and create employment opportunities.

Projected to be operational by the mid-2020s, HyNet North West stands as a testament to the collaborative efforts between the government and private sector in transitioning toward a more sustainable and environmentally friendly economy.

Zacks Ranks & Stocks to Consider

Eni currently carries a Zacks 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.

RPC Inc. (RES - Free Report) derives strong and stable revenues from diverse oilfield services that include pressure pumping, coiled tubing and rental tools. In 2023, the company paid out $34.6 million in dividends, whereas share repurchases totaled $21.1 million.

The Zacks Consensus Estimate for RPC’s 2024 and 2025 earnings per share (EPS) is pegged at 88 cents and $1.13, respectively. The company has a Zacks Style Score of A for Growth and Value.

Global Partners (GLP - Free Report) is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 and 2025 EPS is pegged at $25.58 and $25.36, respectively. The company has a Zacks Style Score of B for Value, Growth and Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

See More Zacks Research for These Tickers

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Global Partners LP (GLP) - free report >>

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

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