Ensuring energy security by accelerating energy transition

Last week we presented our 2022 financial results and new 2023-2026 strategic plan which outlines how we will invest to deliver energy security and affordability along-side emissions reduction.

Energy markets remain volatile.?But our performance over the last year has demonstrated the strength and effectiveness of our strategy. The transformation process which we started in 2014 has allowed us to navigate the crises of the last three years and given us a solid base on which to imagine and build the Eni of the future. Eni is today a robust company that can create value even in difficult scenarios, delivering security of supply and environmental sustainability side by side.

Pursuing environmental sustainability, with energy security and affordability

We have built an agile company that has been made resilient through our disciplined focus on costs, vertical integration and diversification by energy sources, geography and technology. In the coming years, this will allow us to invest in replacing Russian gas while delivering a 35% reduction versus 2018 in our scope 1,2,3 emissions this decade.

• Over the next three years, we will accelerate development of our gas resources– to replace 100% of Russian gas in our portfolio by 2024 and 2025 – 20 billion cubic meters in total.?
• Over the remainder of the decade these same gas resources will help us cut emissions as we pivot production in our upstream business plateaus and the mix shifts from oil to gas.
• And we will continue to grow a range of businesses that can provide customers with low carbon energy and help them reduce emissions – including Plenitude, our Sustainable Mobility Business, CCS and magnetic confinement fusion – potentially the most revolutionary technology of them all.

A distinct partnership approach

We are able to bring new gas resources to market thanks to our success in exploration and strong relationships with the African countries with whom we work. Here, we’re not customers, we are producers and, indeed, partners. Our approach is different.?We invest in supplying energy for domestic markets across the continent, we bring innovation, create jobs, and are committed to supporting access to health and education.

?This is the South-North axis we refer to: a new kind of partnership with Africa, in which those countries are treated with respect. We believe that over the long term, Africa and Europe should work more closely together to help create mutual energy security and support each other’s energy transition.

The new agreements we’ve signed over the last year demonstrate the potential of this new South-North axis and the importance of our resources and infrastructure in Africa to energy security.?However, to take full advantage of the opportunity, it is important for Europe to equip itself with the necessary infrastructure and internal networks, to be able to receive and transport this supply from the South to the North.?

We continue to grow our transition businesses, to enable us to meet our net zero targets

Since the conception of our strategy, we have been very much aware that there’s no going back on the energy transition. Delivering security of supply must go hand in hand with transforming our business to a low and zero carbon model and we remain committed to our decarbonisation goals.

To help customers cut emissions, Plenitude will continue to develop its renewables capacity – exceeding ?15GW by 2030 and the Sustainable Mobility business will accelerate development of its biorefining capacity – to over 5Mn tonnes.

In both cases, our satellite model will help these business grow and secure funding efficiently – setting them up with dedicated management teams and allowing them to secure new investment from investors focused on their specific value proposition.

We are also taking steps to transform our downstream business, investing in new technologies to reduce emissions. In this regard, carbon capture and storage will help reduce Eni's net emissions and provide a solution for other hard-to-abate industries. We have a number of significant projects currently under development using our expertise and depleted fields, notably in the UK’s Hynet and Bacton projects.

?We are, moreover, taking a unique circular approach to our energy production, with our presence along the value chain allowing us to develop more resilient businesses that create additional value. For example, our Natural Resources division is supporting our bio-refining activities, by helping to address the potential bottleneck of feedstocks, availability, and cost. These businesses are being vertically integrated via agricultural hubs in Africa. Moreover, our agri-feedstock supply chain is not in competition with food production and helps to diversify economies in the communities where we operate.?

Eni’s look ahead

In 2022, we achieved excellent financial results, working hard to reduce the risks from the crisis that impacted many European energy companies. We made a significant contribution to the stability of energy supply for our customers and moved our Decarbonization Plan forward, confirming the quality of the business we are building. Our excellent operational performance coupled with a strengthened financial position, have allowed us to enhance our distribution policy further to reward our shareholders.

Today we can clearly outline what Eni will look like in 2030: our Upstream activities will no longer generate net emissions; our production will consist mainly of gas; our biofuel capacity will exceed 5 million tonnes per year and our renewable energy capacity will exceed 15 GW.

This is an important moment in the execution of our strategy, as we work to maintain the momentum behind the progress and innovation we’ve made over the past few years. I’m very much looking forward to writing the next chapters of our story.