Italian oil giant Eni, and oilfield services provider Saipem, both working to diversify their businesses traditionally heavily linked to the oil and gas industry, have signed a deal to work together on the identification and engineering of decarbonization initiatives and projects in Italy.
Eni's CEO, Claudio Descalzi, and Saipem's CEO, Stefano Cao, signed a Memorandum of Understanding (MoU) on the decarbonization push on Wednesday.
In particular, the two Italian industrial giants plan to identify possible opportunities for collaboration in the sector of the carbon capture, utilization, and storage (CCUS) of CO2 produced by industrial districts in the Italian territory.
The objective is to contribute towards the decarbonization process of entire production chains, particularly those of the highest energy intensity by taking clear steps with immediate action to combat climate change and to achieve CO2 reduction targets at the national, European, and global level, the companies said in a statement.
Through the MoU, Eni and Saipem will also evaluate participation in programs financed by the European Union as part of the Green Deal Strategy, proposing the possible inclusion of specific initiatives within the plan for the use of funds intended to support Member States of the 'European Union in the post-COVID-19 phase.
"Eni is committed to responding to the challenge of improving access to reliable and clean energy, counteracting climate change through concrete, rapid, and economically sustainable solutions. Eni's strategy combines the objectives of continuous development in a rapidly evolving energy market with a significant reduction in its carbon footprint," the company said. To remind, Eni last week entered the offshore wind business by buying into the world's largest offshore wind project the Dogger Bank, in the UK.
Saipem, known for its drilling and installation services in the offshore oil and gas space, has also increasingly been involved in the offshore wind installation projects.
With regards to the cooperation with Eni, Saipem says it has consolidated experience and solid skills in the construction of plants linked to the CO2 chain, with the ability to also act as an integrator of processes and technologies, taking into account the expertise and experience gained in the management of CCUS processes on multiple industrial complexes.
"Over the years, Saipem has designed more than 70 plants for the capture of CO2 and over 40 plants for the subsequent transformation into urea," saipem said.
Claudio Descalzi, CEO of ENI, stated: "Through this strategic agreement, Eni intends to strengthen its leadership in the energy transition process, accelerating the evolution of its business model that combines economic and financial sustainability with environmental sustainability.
"The adoption of technological solutions for decarbonization such as carbon capture, utilization, and storage, will be fundamental in the energy transition of the country, and Eni can provide unique skills and expertise in managing production processes and in the fight against climate change".
Saipem's Chief Executive Officer, Stefano Cao, commented: "The agreement signed with Eni strengthens Saipem's role as a leading player in the CO2 capture, transport, reuse and storage sector.
"We are able to propose concrete solutions to support the process of reducing carbon dioxide emissions of the energy and production chains of the industrial districts in Italy and contribute to the achievement of ambitious national and European objectives.
"These solutions require a high level of specialization, competence and experience in this sector that Saipem has developed over the years and is ready to make available in its contribution to Italy’s sustainable recovery and in supporting the technological and industrial supply chain".