Eni SPA E signed an agreement with Commonwealth Fusion System (“CFS”) to accelerate the industrialization of nuclear fusion energy.
The companies will collaborate on a pipeline of projects to launch a nuclear fusion power facility. The facility will be capable of feeding power into the grid at the beginning of the 2030s.
Nuclear fusion energy will generate electricity from nuclear fusion reactions and significantly contribute to the energy transition. The contract will help Eni reach its net-zero emission goal by 2050.
In 2021, CFS examined its high-temperature superconducting magnet technology that ensures plasma confinement in the magnetic fusion process. The technology will create opportunities to achieve net energy from fusion in a future demonstration plant.
The world’s first facility to produce fusion energy, dubbed SPARC, is being developed. The facility is expected to be up and running in 2025. SPARC will create opportunities for ARC, the first commercial power plant, expected to be operational at the beginning of the next decade.
Eni, which invested in CFS in 2018, has a majority ownership in the company. Eni was the first energy company to invest in fusion, which can significantly contribute to energy transition once it is developed on an industrial level.
The agreement will leverage Eni’s global engineering and project management expertise to support CFS, and the development and deployment of fusion energy on an industrial scale. The agreement strengthens the existing partnership between the companies, with the aim of facilitating the industrialization path of fusion.
Shares of Eni have outperformed the industry in the past six months. The stock has gained 15% compared with the industry’s 9.5% growth.
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Zacks Rank & Key Picks
Eni currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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