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Eni (E) Proceeds With Biorefinery Project in South Korea

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Eni SpA’s (E - Free Report) subsidiary, Enilive, and renowned chemicals company LG Chem have solidified their commitment to a groundbreaking joint venture in a significant stride toward sustainable energy solutions.

The companies progress to the final investment decision to bring to fruition a new biorefinery project in South Korea, signifying a crucial step toward achieving their shared goal of a greener future.

Last September, Enilive and LG Chem embarked on an exploration to develop and operate a cutting-edge biorefinery at LG Chem’s integrated petrochemical complex in Daesan, South Korea. The plant is expected to be operational by 2026 at the existing integrated petrochemical complex in Daesan.

The biorefinery will process approximately 400,000 tons of bio-feedstocks annually using Eni’s Ecofining technology. It will do so by leveraging LG Chem’s integrated value chain and the existing facilities at the industrial site.

The biorefinery is set to play a pivotal role in Eni’s overarching strategy to contribute to achieving net-zero emissions by 2050. The focus extends beyond environmental responsibility, with plans to offer increasingly decarbonized products to clients.

The biorefinery project, in collaboration with LG Chem, emerges as a key element in expanding Enilive’s biorefining presence globally. The ambitious plan targets a capacity increase from the current 1.65 million tons per year to more than 5 million tons per year by 2030.

Looking forward, the joint venture positions LG Chem as a key player in the eco-friendly plastic industry. The company’s active support for the biorefinery project underscores its commitment to sustainable development and carbon neutrality. By aligning with Eni in this venture, LG Chem aims to solidify its standing as a true global entity in the pursuit of environmentally conscious practices.

The biorefinery project is not merely a collaboration; it is a testament to the shared vision of Eni and LG Chem in pioneering sustainable solutions. As the world grapples with the challenges of climate change, this partnership sets a commendable example of industry leaders joining forces to drive positive change.

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.

Sunoco LP (SUN - Free Report) is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. Sunoco has a core competency in terms of its history of disciplined expense management.

The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $3.83. SUN currently has a Zacks Style Score of B for Value and Growth.

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. OII currently has a Zacks Style Score of A for Growth, and B for Value and Momentum.

Enbridge Inc. (ENB - Free Report) is a leading energy infrastructure company. It plans to introduce more than C$19 billion in growth projects, contributing to significant EBITDA growth in the near future.

The Zacks Consensus Estimate for ENB’s 2023 and 2024 EPS is pegged at $2.13. ENB currently has a Zacks Style Score of A for Momentum.


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