Italian contractor Saipem (MIL: SPM) has struck a memorandum of understand with its compatriot Eni (NYSE: ENI) in a bid to decarbonise its fleet.
The pair will work together with the aim of aim of employing biofuels on Saipem’s drilling and construction naval vessels, with particular attention to operations in the Mediterranean Sea.
As it stands, the company has a global fleet consisting of 45 vessels for construction and oil and gas drilling.
The pact “represents an important milestone for Eni and Saipem”, confirming the mutual commitment to diversifying energy sources and to reducing the carbon footprint across offshore operations.
Eni has been producing biofuels since 2014, thanks to the conversion of the Venice and Gela refineries into biorefineries, which have been palm oil free since the end of 2022.
Through the proprietary Ecofining technology, vegetable raw materials or animal waste and HVO (Hydrotreated Vegetable Oil) biofuel products are processed.
Biofuels are one of the pillars of Eni’s strategic plan to achieve carbon neutrality by 2050, through a decarbonisation process that aims to reduce emissions from industrial processes and products.
This agreement forms part of the execution of Saipem’s strategy for the reduction of greenhouse gas emissions and implements, with the ultimate aim of becoming net zero by 2050.
Thanks to the use of biofuel, Saipem will potentially be able to reduce ita emissions by around 550,000 Tonnes of CO2eq per year, equal to 60% of its total annual Scope 1 emissions.