Italy’s Eni and Mubadala Petroleum of the United Arab Emirates have agreed to co-operate on energy transition initiatives including hydrogen and carbon capture, utilisation and storage (CCUS).

They have signed a memorandum of understanding (MoU) covering potential joint opportunities in the Middle East, North Africa, South-East Asia, Europe and other regions of mutual interest.

The MoU announced on Tuesday marks a further step in line with Eni’s commitment to carbon neutrality by 2050, promoting co-operation between players in the sector and consolidating alliances to tackle the energy transition.

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Eni chief executive Claudio Descalzi said: “Eni will leverage all its proprietary technologies, focused on energy transition. We will work with a strategic partner like Mubadala Petroleum to find ways of reaching common decarbonisation targets worldwide.”

Eni’s decarbonisation path envisages a net zero carbon footprint for scope 1 and 2 emissions from upstream activities by 2030 and from all group activities by 2040. It aims to accomplish the net-zero target on greenhouse gas (GHG) life-cycle scope 1, 2 and 3 emissions by 2050 with full decarbonisation of products and operations.

It said this would be achieved through bio-refining, circular economy, efficiency and digital solutions, increased renewables capacity, blue and green hydrogen, CCUS and efforts to reduce emissions from deforestation.

Recent initiatives include carbon capture and storage projects in the UK, delivering carbon-neutral liquefied natural gas cargoes and new solar capacity in Spain and France.

Mubadala said the partnership fits with its proactive approach to environmental, social and governance considerations and its energy transition goals, which include pursuing a strategy under which its asset base has reached almost two-thirds natural gas, while reducing GHG emissions by 25% in the past three years.

“We are committed to playing our part in the energy transition,” said chief executive Mansoor Mohamed Al Hamed.

“This includes pursuing a gas-weighted portfolio as a key bridge to renewables. It also includes investing in innovation and technology to advance decarbonisation and support the industry’s evolution.”