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Eni & MSC Sign MoU to Drive Carbon Neutrality Goals & Clean Practices

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Eni SpA (E - Free Report) and MSC Group have signed a memorandum of understanding (MoU) to drive decarbonization and sustainable practices across their operations. The agreement, signed by Eni CEO Claudio Descalzi and MSC group president Diego Aponte, builds on their existing partnership and extends it to new sustainability initiatives.

Under the MoU, Eni and MSC will explore the use of cleaner energy carriers for the latter’s logistics and cruise fleet. This includes leveraging LNG, HVO (Hydrotreated Vegetable Oil) and bio-LNG biofuels. Additionally, renewable raw materials will contribute to the production of sustainable lubricants for MSC’s operations. The agreement also envisions renewable energy integration to decarbonize MSC’s sites and facilities.

The partnership aims to align both companies' operations by developing intermodal solutions for transporting biofuels and agro-industrial feedstock. Joint efforts will also focus on the decommissioning of offshore platforms and research initiatives under Eni’s Open-es platform for sustainable value-chain practices.

The MoU emphasizes circular economy principles, including use of renewable and recycled materials on MSC vessels and efficient onboard waste management. Additionally, decommissioned Eni assets may be repurposed to support sustainability goals.

Claudio Descalzi highlighted the need for collective efforts, emphasizing that reducing emissions demands the integration of skills, resources and technologies. He noted that the partnership with MSC plays a crucial role in advancing decarbonization initiatives in the transport and cruise sectors, thus enabling meaningful progress.

Similarly, Diego Aponte highlighted the strong, trusted relationship between Eni and MSC, viewing the MoU as a natural progression of their collaboration. He expressed confidence in the partnership's potential to enhance sustainability efforts and expedite the energy transition across MSC Group operations.

With this MoU, Eni and MSC reaffirm their commitment to achieving carbon neutrality by 2050, setting a benchmark for sustainable practices in the transport and cruise industries.

E’s Zacks Rank & Key Picks

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

Investors interested in the energy sector may look at some better-ranked stocks like Smart Sand, Inc. (SND - Free Report) , FuelCell Energy (FCEL - Free Report) and Nine Energy Service (NINE - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, thereby reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position it for growth in the long run.


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