Eni (E) will decarbonize the aeronautical industry using HVO biofuel

Eni SPA E and its partner Aeroporti di Roma (or ADR) have taken an important step in decarbonizing the aviation sector and accelerating clean energy transitions at airports.

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Eni delivered 5,000 liters of pure hydrotreated vegetable oil (“HVO”) biofuel to Fiumicino airport from its Venice biorefinery, located in Porto Marghera. This will contribute significantly to the decarbonisation of road vehicles at the airport.

HVO is a high quality biofuel, which is used in vehicles operated by ADR to transport passengers with reduced mobility around airports. It will be used in a fully refined form, as all impurities such as oxygen and sulfur are removed from the biofuel. Notably, HVO can reduce carbon dioxide emissions by 60-90% compared to conventional fuel, depending on the type of biogenic feedstock.

Last year, Eni and ADR signed an agreement to introduce sustainable aviation fuels (“SAF”). ADR, which has been carbon neutral since 2013, has pledged to eliminate all of its emissions by 2030. The latest achievement is a step forward for ADR in terms of sustainability.

In the coming months, Eni will start producing SAFs at its Livorno refinery through the distillation of biocomponents produced in its biorefineries. The raw materials used will only be waste vegetable oils and fats. The final product, Eni Biojet, will contain 100% biogenic components and include up to 50% blending with conventional jet fuel.

Since 2014, Eni has been producing HVO biofuel at its Venice and Gela biorefineries using its Ecofining technology. Eni has converted its refineries in Italy to produce biofuels as part of its plans to become carbon neutral by 2050. The company’s net zero emissions strategy will provide a variety of decarbonized products to help the sector aviation to re-establish itself as a greener and more sustainable industry.

Company profile and price performance

Based in Rome, Italy, Eni is one of the world’s leading integrated energy players.

Eni shares have outperformed the industry over the past six months. The stock gained 33.4% against industry growth of 30.2%.

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Zacks Ranking and Other Stocks to Consider

Eni currently sports a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector can also look to the following companies which also currently boast a Zacks #1 ranking. You can see the full list of today’s Zacks #1 Rank stocks here.

TotalEnergies SE TTE has one of the best production growth profiles among the super oil majors, characterized by an upstream portfolio, with above-industry average exposure to the fastest growing hydrocarbon-producing regions of the world. TotalEnergies invests regularly to expand its renewable activities and strives to achieve net zero emissions by 2050.

TotalEnergies is expected to see earnings growth of 16.7% in 2022. TTE currently has a Zacks-style score of A for Value and B for Growth and Momentum. TotalEnergies effectively manages long-term debt and tries to keep it at manageable levels. TTE’s debt to capital has decreased over the past few years.

PetroChina Company Limited PTR is the largest integrated oil company in China. PTR is one of the largest producers of crude oil and natural gas in the world. PetroChina’s natural gas business offers lucrative growth prospects in the coming years as China transitions from coal to natural gas.

PetroChina is expected to see earnings growth of 8.5% in 2022. PTR currently has a Zacks style score of A for Value and Momentum. In the first nine months of 2021, PetroChina’s upstream segment recorded an operating profit of RMB 58.4 billion, almost triple the profit of RMB 20 billion a year earlier.

Centennial Resource Development, Inc. CDEV is an independent oil and gas exploration and production company. In 2020, CDEV’s net production was recorded at 67,161 barrels of oil equivalent per day, of which oil contributed 53.7%, and natural gas and natural gas liquids accounted for the remainder.

Centennial Resource is expected to experience 98.4% earnings growth in 2022. CDEV currently has a Zacks Style Score of B for growth and momentum. At the end of the third quarter of 2021, cash and cash equivalents increased to $5 million from the second quarter level of $4.7 million. Long-term net debt outstanding was $1,004.9 million, down from $1,054.3 million at the end of the second quarter.

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