Eni to Develop CCS Project to Aid UK's Decarbonization Efforts

Eni S.p.A E, a leading integrated energy player, has been awarded an agreement for lease by The Crown Estate for a carbon capture and storage (CCS) project. The agreement for lease was awarded for the Hynet project, the first CCS project in the United Kingdom to reuse existing pipelines and infrastructure to reduce emissions. Reusing the existing infrastructure should help reduce the project's cost and the overall environmental damage associated with the construction of a new project.Eni Awarded Lease Agreement for the HyNet ProjectThrough this agreement, Eni will gain the rights to access and use the seabed and the pipeline infrastructure in place to transport carbon dioxide from the HyNet industrial cluster and safely store it. The HyNet project is aimed at capturing and storing carbon dioxide emitted from large industrial emitting sites in the North West of England and North Wales.Once captured, these emissions will be safely transported to the storage site. For this project, Eni will leverage its depleted natural gas reservoirs under the Irish Sea. Capturing and storing the carbon dioxide emissions under the seabed will prevent them from leaking into the atmosphere, helping the UK achieve its net zero emissions target.Impact on the UK’s Decarbonization StrategyAfter commencing operations, the HyNet project is anticipated to capture up to 10 million tons per year of carbon dioxide after 2030. This project marks a significant step toward the UK’s target of capturing and storing 20-30 million tons of carbon dioxide per year by 2030. The HyNet project is the second Track 1 project to have secured an agreement for lease by The Crown Estate.Previously, in October 2023, The Crown Estate granted an agreement of lease to another project that is expected to become one of the world’s largest CCS initiatives in the North Sea region. Both projects are crucial parts of the UK’s broader strategy to capture and store large amounts of carbon dioxide, contributing to the country’s decarbonization efforts.Eni will tap into its extensive experience in developing natural gas fields for this project. The company will leverage its skills, technical know-how and extensive knowledge in handling complex projects to repurpose the existing pipeline infrastructure and platforms. Reusing the existing assets should enable Eni to develop these carbon dioxide storage hubs rapidly and at a lower cost. This should help the company to support the decarbonization of its own activities and provide storage services to third parties.The Crown Estate’s RoleThe Crown Estate believes that carbon capture and storage initiatives will play a pivotal role in meeting the UK’s decarbonization target. It also supports Eni’s innovative approach of leveraging its existing infrastructure for the HyNet project, thereby reducing the overall environmental damage.E’s Zacks Rank and Key PicksCurrently, E carries a Zacks Rank #5 (Strong Sell).Some better-ranked stocks in the energy sector are PEDEVCO Corp. PED, Archrock Inc. AROC and FuelCell Energy FCEL. PEDEVCO and Archrock presently sport a Zacks Rank #1 (Strong Buy) each, while FuelCell Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, and in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations. Combined with bullish oil prices, this is expected to boost the company's production and overall profitability.Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.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, resulting in reduced carbon emissions and minimizing the environmental impact of power generation. As such, the company is anticipated to play a crucial role in the energy transition by enabling industries and communities to move away from traditional fossil fuels toward low-carbon alternatives.Infrastructure Stock Boom to Sweep AmericaA massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.The only question is “Will you get into the right stocks early when their growth potential is greatest?”Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eni SpA (E): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Pedevco Corp. (PED): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks