Zacks.com reports Italian oil giant Eni S.p.A. and U.K.-based Fiat Chrysler Automobiles N.V. have recently signed a Memorandum of Understanding to jointly develop technologies to reduce carbon emission from vehicles. The agreement was signed before Italian Prime Minister Paolo Gentiloni and is in line with both companies' strategy to focus on carbon emission reduction.
Eni says the agreement will enable the companies to do extensive research on technologies related to compressed natural gas (CNG) and liquefied natural gas (LNG). These technologies are expected to enable the companies to reduce tank weights and increase mileage.
Eni also announced it has developed a new kind of fuel that contains 15 percent methanol and 5 percent bioethanol. The company says using methanol in the fuel significantly reduces emissions. Eni and Fiat Chrysler will together test this new type of fuel in five Fiat 500 Enjoy fleet cars. ENJOY is a ride-sharing project operating in Rome, Milan and other Italian cities. Eni believes the methanol/bioethanol fuel can reduce carbon emissions by about 4.3 percent.
Because road vehicles are responsible for approximately 23 percent of carbon emissions, Eni and Fiats are also testing the use of increased proportion of hydrotreated vegetable oil or HVO in diesel for existing engine, saying the HVO reduces emissions by 60 percent during the production process.