Yahoo Finance Eni (E) Signs Deal to Supply HVOlution to the Spinelli Group
Eni SPA E signed an agreement with the Spinelli Group to power the latter’s fleet with HVOlution for two years.
The Spinelli Group’s fleet involves more than 300 heavy-duty vehicles. Of the total, 150 are the latest-generation Euro 6d trucks compatible with pure biofuel.
The agreement is part of Eni’s plan to develop sustainable transport services via its new company, Eni Sustainable Mobility. It reflects how Eni can back big transport players on the path toward decarbonization.
HVOlution is a diesel fuel produced from 100% renewable raw materials. The biofuel is produced from waste raw materials, vegetable residue and oils, which are processed in Eni’s bio-refineries in the Sicilian town of Gela and in Venice.
The renewable raw materials are produced from crops that do not compete with the food chain. They are supplied to Eni through a network of agri-hubs, currently being developed in several African countries.
The supply of biofuel to the Spinelli Group will be accomplished by Eni Sustainable Mobility’s network of retail outlets. The product is available in 57 service stations and is likely to be available in 150 sales points in Italy by the end of March.
Established in 1963, the Spinelli Group manages the entire supply chain for the container sector, from the arrival of containers in ports to their delivery to the final customer. It provides shipping companies with integrated solutions including multimodal transport, storage and customs forwarding activities.
The agreement represents an important move for the Spinelli Group as this type of biofuel can immediately decarbonize the transport supply chain.
Price Performance
Shares of Eni have outperformed the industry in the past six months. The stock has gained 16.3% compared with the industry’s 9.5% growth.
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Zacks Rank & Key Picks
Eni currently carries a Zack Rank #3 (Hold).
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