Eni Business Model Canvas

Eni actively forms joint ventures in renewable energy development to speed up its growth in solar, wind, and other green sectors. These partnerships, often managed through its Plenitude and Enilive divisions, are crucial for increasing its renewable energy capacity and securing the substantial capital needed for major infrastructure projects.

Key collaborations include significant investments from KKR and Energy Infrastructure Partners in Enilive and Plenitude, demonstrating strong financial backing. Furthermore, a notable joint venture with LG Chem focuses on biorefinery development, highlighting Eni's diversified approach to sustainable energy solutions.

Eni's key partnerships are crucial for accessing resources, sharing risks, and driving innovation in both traditional and new energy sectors. These collaborations span national oil companies, technology providers, and financial investors, enabling Eni to undertake large-scale projects and advance its decarbonization goals.

In 2024, Eni continued to strengthen its alliances, particularly in renewables and biorefining. For instance, its joint ventures in renewable energy development, often managed through Plenitude and Enilive, secured significant capital, with notable investments from KKR and Energy Infrastructure Partners. These partnerships are vital for expanding Eni's green energy capacity and achieving its sustainability targets.

Eni refines crude oil into essential products like gasoline, diesel, and lubricants, distributing them via its vast retail and wholesale networks. This core activity is evolving, with a significant push towards biorefining for sustainable fuels.

The ongoing conversion of the Livorno refinery is a prime example of this strategic shift, aiming to integrate biorefining capabilities and meet growing demand for greener energy solutions. In 2024, Eni continued to invest in upgrading its refining assets to enhance efficiency and sustainability.

Eni's key activities encompass the entire energy value chain, from exploring for and producing oil and gas to refining, marketing, and increasingly, developing renewable energy and biofuels. The company is actively expanding its upstream production, evidenced by the Neptune Energy acquisition in early 2024, which added approximately 160,000 boe/d. Furthermore, Eni is a significant player in gas and LNG trading, with gas and LNG projected to be a major part of its portfolio by 2045. Its refining operations are undergoing a transformation towards biorefining, with ongoing investments in asset upgrades for efficiency and sustainability.

The company's strategic focus on decarbonization is reflected in its substantial investments in renewable energy generation, targeting 15 GW of installed capacity from solar and wind by 2030 through Plenitude. Concurrently, Enilive is a leader in advanced biofuel production, utilizing waste materials. Eni is also developing carbon management as a business, focusing on Carbon Capture, Utilization, and Storage (CCUS) technologies, exemplified by projects like the one at Liverpool Bay, to help decarbonize challenging industrial sectors.

Eni's intellectual property portfolio is a cornerstone of its business model, encompassing proprietary exploration and production techniques that enhance resource recovery. Its Ecofining™ technology, for instance, is a key proprietary process for producing sustainable biofuels, demonstrating a commitment to lower-carbon energy.

These technological advancements are not just differentiators but also crucial enablers for Eni's strategic pivot towards more sustainable energy sources. The company's investment in advanced computational power, exemplified by its HPC6 supercomputer, further underscores its dedication to innovation and data-driven solutions in areas like carbon management and energy transition modeling.

Eni's key resources are its substantial oil and gas reserves, extensive global infrastructure for processing and distribution, a strong portfolio of intellectual property including proprietary technologies like Ecofining™, and its highly skilled workforce of approximately 31,000 individuals. The company's financial capital, demonstrated by its robust 2024 cash flow of around €12 billion and access to capital markets, underpins these operational and innovative capabilities.

Eni's commitment to technological innovation drives efficiency across its entire value chain, from exploration to new energy solutions. By integrating advanced digital technologies and R&D, Eni optimizes operations, reduces costs, and enhances the performance of its energy products and services. This focus on innovation is central to its strategy for sustainable growth and a reduced environmental impact.

In 2024, Eni continued to invest heavily in research and development, particularly in areas like carbon capture and storage (CCS) and biofuels. For instance, its bio-refinery in Porto Marghera achieved a 90% reduction in CO2 emissions compared to traditional refining processes. This dedication to cutting-edge technology allows Eni to offer more sustainable and efficient energy solutions, positioning it as a leader in the energy transition.

Eni provides reliable, diverse energy sources and is transitioning to lower-carbon solutions, driven by innovation and a commitment to sustainability. Its integrated business model and satellite structure ensure efficiency and tailored offerings, aiming for carbon neutrality by 2050.

Eni's retail customers benefit from a robust digital ecosystem, including dedicated mobile apps and online portals. These platforms allow for easy account management, bill payments, and access to energy consumption data, enhancing convenience. As of 2024, Eni's subsidiary Plenitude serves a substantial 10 million customers, underscoring the reach and importance of these digital self-service options.

Eni cultivates strong relationships with its retail customers through a comprehensive digital platform, including mobile apps and online portals, facilitating easy account management and access to energy data. As of 2024, its subsidiary Plenitude serves approximately 10 million customers, highlighting the effectiveness of these self-service channels.

The company also prioritizes community engagement, undertaking over 100 local development projects across 21 countries in 2024 to foster trust and ensure a positive social license to operate.

Furthermore, Eni maintains transparent communication with investors through detailed financial reports and direct engagement, reinforcing shareholder confidence, as demonstrated by its 2024 financial performance and increased shareholder remuneration.

Eni leverages its extensive network of owned or jointly-owned pipelines for the secure transportation of oil and gas, ensuring efficient delivery from extraction points to processing facilities and end markets. This robust infrastructure is a cornerstone of their operations, facilitating the movement of vital energy resources across various geographies.

The company also operates a significant fleet of Liquefied Natural Gas (LNG) carriers, which are essential for the global distribution of natural gas. This capability allows Eni to participate actively in the international LNG market, connecting supply with demand worldwide.

Looking ahead, Eni is strategically focused on expanding its energy production and bolstering its infrastructure in North Africa, a key region for its operations. This includes investments in pipeline capacity and LNG terminals to support growing production volumes and enhance export capabilities.

In 2023, Eni's gas production reached 65.7 billion cubic meters, underscoring the importance of its transportation and distribution channels. The company's commitment to infrastructure development, particularly in regions like North Africa, aims to support its strategic growth objectives and strengthen its position in the global energy landscape.

Eni's digital channels, including its corporate website and investor relations portals, are vital for transparent communication and disseminating financial and strategic information. Plenitude, its retail energy arm, leverages these digital platforms for customer acquisition, onboarding, and service delivery, particularly for its renewable energy offerings.

In 2023, Eni saw a notable surge in digital engagement, with its website traffic climbing by over 15% year-over-year, underscoring the growing importance of its online presence for stakeholder interaction and information sharing.

Wholesale energy traders and distributors form a crucial segment for Eni, involving the large-scale procurement and sale of energy commodities. These entities operate within complex global markets, managing supply and demand for natural gas, oil, and refined products. Eni's Global Gas & LNG Portfolio is a key enabler for these businesses, facilitating their trading activities.

In 2024, the global wholesale energy market continued to be influenced by geopolitical events and the ongoing energy transition. Eni's strategic positioning in LNG, for instance, allows it to provide flexible and reliable supply to these traders, a critical factor in a volatile market. The company's ability to source and deliver significant volumes underpins its value proposition to this segment.

Eni serves a diverse range of customer segments, from large industrial enterprises and governments to individual households and specialized sectors like aviation. These segments represent varying needs for energy supply, from bulk commodities to specialized sustainable fuels.

The company's strategy involves catering to the foundational energy requirements of industrial giants and national entities, while also engaging with the growing demand for cleaner energy solutions in retail and transportation. This broad market approach is supported by Eni's integrated business model.

In 2024, Eni's focus on customer relationships remained strong across all segments. For instance, its retail arm, Plenitude, continued its expansion, serving over 10 million customers with electricity, gas, and mobility services, underscoring its commitment to a broad consumer base.

The company's upstream production in 2023 reached 1.73 million barrels of oil equivalent per day, a testament to its significant role in supplying energy to national companies and governments worldwide, solidifying its position as a key global energy partner.

Eni is significantly increasing its capital expenditure on energy transition initiatives. These investments, totaling €1.4 billion annually from 2025 to 2028, are directed towards expanding renewable energy generation, developing advanced biorefineries, and building carbon capture and storage (CCS) infrastructure.

This strategic allocation of capital underscores Eni's commitment to its decarbonization roadmap and its ambition to become a leader in emerging, lower-carbon energy markets. These expenditures are fundamental to the company's long-term vision and its ability to adapt to a changing global energy landscape.

Eni's cost structure is dominated by capital-intensive exploration, development, and production, with planned net capital expenditure averaging €7 billion annually from 2024-2027. Significant operating expenses are also incurred in refining, trading, and marketing, with refining and marketing operating expenses reaching €16.6 billion in 2023. The company is also investing €1.4 billion annually from 2025-2028 in energy transition initiatives, including renewables and biorefineries, alongside substantial R&D and environmental compliance costs.

Eni's revenue streams include the significant sale of Liquefied Natural Gas (LNG) to global markets, a segment experiencing notable growth. This trading and supply operation is a core component of their energy portfolio.

Beyond LNG, Eni also generates substantial revenue from the sale of electricity. This power is produced from a mix of conventional and renewable sources, catering to a broad customer base including industrial, commercial, and retail consumers.

In 2023, Eni's upstream segment, which includes gas production and LNG sales, saw a significant contribution to its overall results, reflecting the increasing importance of its LNG business in the international energy landscape.

Eni's revenue is multifaceted, extending beyond traditional oil and gas sales. The company generates income from the sale of refined petroleum products, including gasoline and lubricants, through its extensive service station network. Furthermore, Eni is increasingly capitalizing on its biorefining capabilities, selling biofuels like HVO and SAF, with a target of 5 million tonnes per year capacity by 2030.

The company's electricity sales, derived from both conventional and renewable sources, contribute significantly to its revenue mix. In 2023, Eni's upstream segment, particularly its gas and LNG operations, demonstrated robust financial performance, highlighting the growing importance of its liquefied natural gas business in the global market.

A key emerging revenue stream for Eni is Carbon Capture and Storage (CCS), offering decarbonization solutions to hard-to-abate industries. This service-oriented business, set to be bolstered by a dedicated satellite company launch in 2025, targets third-party emitters, positioning Eni as a provider of climate solutions.