Being one of the world's greatest energy companies also means acting responsibly to make sure the future generations have sustainable energy. This entails investing in new ways to meet the world's increasingly pressing demand for energy. The solutions adopted must address vital global and local issues, such as the need to discover and sustainably use all available energy resources, fight climate change, secure supplies, identify innovative and efficient products and processes, acquire the ability to transform energy resources into real social and economic development for the producer Countries. 
Investing in sustainable energy means starting to build a long-term future where alternative sources will also replace fossil energy production. In order to build this future, research is the only way to make the use of renewable energies feasible both financially and technically. Eni has chosen to invest in research on solar energy and biofuels, which ? for different reasons ? are viewed as the energies of the future, along with the sustainable use of other available resources. R&D activities are subdivided into two programs: the development of key core business technologies and the search for new technological solutions in the area of renewable energy sources. 
The first group includes, for example, technologies for mining a greater amount of crude oil contained in a field, or for the total conversion of crude oil into high-performance low environmental impact fuels.
The second group includes a program called "Along with Petroleum" (AWP), a systematic approach to research and technological development of renewable sources and environmental protection.
The goal of AWP is to develop technologies that will enable the sustainable, large-scale use of solar energy and the production of biomasses on a large scale in addition to achieving superior results in the combined use of fossil and renewable sources in the Countries where the Company operates. The primary constraints which renewable resources must overcome are limited productive capacity, elevated costs and a low degree of efficiency in production processes, thereby resulting in the doubtful environmental and economic Sustainability of currently available production systems. The AWP program projects have the objective of overcoming these obstacles with regard to the use of solar energy and the production of biofuels; these two groups have been identified as those with the greatest degree of future potential.

HIGHLIGHTS ENI RESEARCH: STRATEGIES AND RESULTS

To enhance the effectiveness and efficiency of its technological innovation activities, Eni has strengthened its research and technological innovation policy, organizing it into the following four lines of action:
- distribution of the research and technological development programs among three centers: the Centre for Non-conventional Energies in Novara, the Oil & Gas Centre in S. Donato Milanese, and the Environmental Studies Centre in Monterotondo (Rome); research and development of technologies for the use of solar energy and the production of biofuels are conducted at the first two centers;
- development of a system of strategic alliances and scientific collaborations. Eni is developing a system of strategic alliances with Universities, Centres and primary companies engaged in research in the energy sector or in related areas, of internationally recognized excellence and equipped with a unitary structure for external relations. In 2008 Eni signed an important research partnership with the Massachusetts Institute of Technology of Boston, which focuses on the development of innovative energies in the solar sector; the five-year alliance includes a total financial commitment of US$ 50 million. Master agreements signed in the same year with the Polytechnical Institutes of Milan and Turin will be the framework for numerous collaborations, ongoing or about to be set up with these Universities;
- adding value to the intellectual property generated by research and development activities. Intellectual property is among Eni's most valued assets. In 2008 the Company filed 96 patent applications, 43% more than in 2007. Specifically, the Company filed: 27 patent applications for drilling and completion technologies, geology/geophysics/oil fields, mid- and downstream engineering; 2 for gas transmission technologies; 20 for biofuels, catalysts, and refining and environmental process technologies; 8 for solar and biomass energy; 11 for petrochemical tecnologies;
- promotion and support of scientific research. As part of this objective, in 2007 the Company created the Eni Award for scientific research in the area of sustainable energy. Encouraged by the success obtained in the first year (2008), the 2009 awards have been expanded, both in a number of recognitions (a third award, "New Frontiers in Hydrocarbons", has been added to the two existing: "Alternative and Non-conventional Energies" and "Environmental Protection") and in monetary amount. The number of competitors for the 2009 award (490 from all over the world, 124% or more than double from last year) and the outstanding scientific value of the projects submitted prove the success of the initiative and its appreciation by the scientific community. The Award relies on a consolidated and prestigious network of energy and environment researchers, and aims at gathering the best research projects and the most prominent international scientists in this field, with the ambition to become a sort of "Nobel Prize for Energy".
In 2008 Eni invested 217 million Euros, after administration and general expenses in Research & Development (208 million Euros in 2007, approximately 50% of which went into Exploration & Production research), with 1,098 people working full-time in R&D activities at the end of 2008. Over the next four years Eni plans to invest a total of approximately ? 1.1 billion in the "Blue Sky" fund, created to finance research on high-risk, highly innovative technologies for industrial application in the mid- to long term; 96 million Euros have been allocated in the four year period. In 2005-2007 the percentage of Eni's revenues devoted to research and development is in line with the best performers in the O&G industry (with the additional exception of fine chemicals and pharmaceutical companies, whose innovation efforts are considerably greater than those in the energy sector). For additional details on the technologies developed and the results achieved, see Eni's "2007-2008 Technology Report".

ADDING VALUE TO DIFFICULT RESOURCES

The most important mining fields in the world are managed mainly by the national oil companies of the respective producer Countries. Under the pressure of limited access to the reservoirs, international companies strive on the one hand to open new mining frontiers, even in very difficult areas, and on the other to make the most of available hydrocarbon resources. In these areas, it is vitally important to have distinctive technologies and key skills, and to adopt sustainable engineering and operating solutions designed to minimize the unfavourable effects of operational activities on the environment by protecting biodiversity, reducing visual impact and emissions in the air, containing waste and confining any hazardous substances.  Today, and even more in a mid- to long-term perspective, exploration and production initiatives in "difficult" areas are an essential element in oil companies' development strategies. The Company operates numerous upstream projects in arctic areas (Alaska, Norway, Russia) and in deep and ultradeep waters (e.g. Angola, Brazil, Gulf of Mexico and India), often characterized by a complex geology, as well as in mining fields with high sulphur content and high pressure and temperature (Caspian Sea). Additionally, Eni is starting the development of ultra-heavy crude oils in Venezuela, opening up a new development frontier for bituminous sands in the Congo which will allow for the forecasting and prevention of environmental accidents. The increase in production registered in 2008, and even more the growth expected in the next 4 years, will also be the outcome of the technology and engineering solutions adopted. 
As part of the effort to optimize hydrocarbon resources, an important tool is the improvement of oil recovery techniques in already discovered fields now in a phase of advanced drilling maturity. With current technologies, an average of only one third of the oil originally existing in a reservoir can be actually drilled. An improvement, however small, of our oil recovery capabilities would allow us to expand the stock in existing fields. In this respect, one of Eni's objectives is the large-scale application of collaborative recovery technologies and the development of innovative Enhanced Oil Recovery (EOR) techniques.  A growing percentage of oil supply is obtained from heavy oil and non-conventional oil reservoirs. Optimizing the use of these types of crude oil requires advanced technology processes. For this purpose, Eni has developed the proprietary EST (Eni Slurry Technology) technology process. As regards gas transmission, in addition to the infrastructure described in the previous section, Eni is investing in technologies for the exploitation of "marginal gas" and "non-conventional gas" fields (approximately 15% of proven reserves) which cannot be put to valuable use with current transmission technologies because of their small size or distance from end markets. When associated with oil production, these resources are burnt in the atmosphere (gas flaring), with significant impacts on the environment. Possible technological options currently under study or development include: high pressure pipeline transmission (TAP), transport in liquid (LNG) or compressed form (CNG), in-collar transformation into other energy vectors such as electric power and hydrogen, and conversion into liquid products (GTL). In addition to expanding its LNG portfolio and increasing the use of gas also in developing Countries through the construction of power plants and electroducts, Eni is studying the adoption of technological solutions to connect markets and production areas located at more than 3,000 km from each other, transmitting gas volumes for a total for about 20-30 billion cubic meters per year. The High-Pressure Transport project (Trasporto Alta Pressione ? TAP) has developed a technology that allows such transmission through the use of high and very high grade steel able to withstand levels of operating pressure in the pipes that are double those normally possible. The pipes used require significantly lower thicknesses and smaller diameters than current industry standards: the next stages of project development will include testing to verify whether the technology can be extended to environments with extreme weather conditions.

COMMITMENT TO IMPROVING REFINING PROCESSES AND PRODUCTS

For capacity and complexity of its refining plants Eni is the #1 oil Company in the Mediterranean area, and is further strengthening its leadership. To this end, Eni is improving its ability to add value to "difficult" crude oils and to manufacture and sell increasingly cleaner oil products. Using its proprietary EST process, Eni is able to perform the full conversion of heavy and extra-heavy oils into high-quality, minimum environmental impact distillates (free of sulphur and heavy metals) with zero residue output (fuel oil and coke). Minimized fuel oil production will allow Eni to respond in advance to a "zero fuel oil" scenario. This product is already largely replaced by other energy sources for thermoelectric and industrial uses, and in the long term it is also expected to become superseded in maritime transport, as a result of the recent international regulations issued by the International Maritime Organization (IMO). Cutting-edge refining technology and strong commitment in research have allowed the Company to achieve leadership in the production of eco-compatible and technologically advanced fuels and lubricants. In particular, in 2008 the sales of "Blu" products (BluSuper and BluDiesel Tech) reached 660,000 tons, or approximately 8% of the total Eni network sales in Italy. These fuels help to improve vehicle engine efficiency and to reduce polluting emissions significantly. Research is currently in progress to develop new, low-environmental impact diesel oils (lower particle emissions) and innovative technologies for the generation of hydrogen, used to obtain high-quality, less polluting fuels. Lastly, Eni is enhancing its distribution network for environmentally friendly fuels, like LPG and methane, and is planning to install photovoltaic panels to generate "clean" energy in 76 filling stations (see the section "Living in the world"). 

GEOLOGICAL CONFINEMENT OF CO₂

In the appropriate conditions, the geological confinement of carbon dioxide (CO₂) may contribute significantly to reduce its emissions in the air. This technology involves separating carbon dioxide from combustion fumes issuing, for example, from large thermoelectric plants, transmitting it to the site selected for geological confinement, injecting it underground, and monitoring CO₂ evolution. This process is called CCS (Carbon dioxide Capture and Storage). In October 2008 Enel and Eni signed a strategic cooperation agreement for the joint development of CCS technologies. The two companies decided to join forces in order to accelerate the implementation in field operations of the entire technology package required for the capture, transfer and confinement of carbon dioxide. The first Italian pilot project will be completed under this program. Enel will be responsible for the processes required to separate CO₂ from the combustion fumes of the Brindisi thermoelectric plant, while Eni will focus on technologies for underground injection and monitoring at the Cortemaggiore (Piacenza) field. In the Brindisi site, the two companies will also set up a pilot line to study the transmission of dense CO₂. Downstream of these pilot-scale activities, Eni and Enel will conduct a feasibility study for the completion of a large integrated project for the confinement of CO₂ generated by a coal-powered plant owned by Enel. A joint study will also be carried out to determine the domestic CO₂ storage potential. This project will allow Eni to develop expertise along the entire technological process for CO₂ capture, transmission and storage; this expertise can then be applied to large-scale demonstrative projects strongly encouraged by the European Commission. Concomitantly with the signing of the strategic agreement, Eni, Enel and the Italian Ministry for the Environment signed a Protocol of Understanding for the testing and widespread application of CO₂ capture technique and for the promotion of renewable energy sources. Underground CO₂ injection can also be employed to increase the recovery rate of crude oil from reservoirs.
Eni has started research for the adoption of an Enhanced Oil Recovery (EOR) technique with CO₂ injection to increase the rate of recovery of heavy oils from Eni operated fields. Carbon dioxide could be recovered from industrial facilities in proximity of the fields, so that CO₂ capture, transmission, EOR and storage could be carried out at a single integrated industrial complex. In the most favourable cases, preliminary estimates indicate the possibility of doubling oil output.

RESEARCH ON RENEWABLE ENERGY SOURCES

Solar energy

Solar energy can be exploited either through the direct conversion of the sun's rays into electricity (photovoltaic solar energy) or into thermal power by heating a fluid using appropriately oriented mirrors (thermal solar power). The heat generated through this process is converted into electricity in steam powered turbines (Concentrated Solar Power ? CSP) or employed for civil uses (low-temperature thermal solar energy). Current technological limits to the use of solar energy include low capture efficiency, variable intensity and non-correspondence between areas with high irradiation (e.g. deserts) and with high energy consumption levels. Eni is committed to finding solutions to these problems, and has also entered into numerous partnerships with the most prestigious research institutions worldwide. Among these, one that is particularly worthy of mentioning for breadth of objectives and program duration is the strategic alliance with the Massachusetts Institute of Technology (MIT) of Boston, Mass. The core part of the agreement includes the "Solar Frontiers Research Program" for the development of advanced solar technologies, in which Eni will invest 25 million dollars over five years. In detail, Eni's goal is to replace silicon, which is the basic material used to make current solar cells, by organic materials with significantly lower costs than silicon and conversion efficiency levels that could become comparable in the long run. In the area of concentrated solar power Eni is testing solutions based on breakthrough innovations in terms of fluids used for energy accumulation and transfer, as well as materials used to make the mirrors that concentrate sunlight. Research projects are also underway to integrate efficiently the use of solar and fossil sources for the production of a wide range of products (electricity, heat and desalted water): an example of this technology is found in the hybrid systems consisting of a CSP system and a combined cycle gas turbine (CCGT). These systems are the ideal choice for Countries with high levels of solar irradiation and natural gas reserves to be exploited locally. In addition to the partnership with MIT, all activities in the area of solar energy development are carried out at Eni's Donegani Research Centre for Non-conventional Energies in Novara.

Biofuels and biomasses

Eni's research and development are devoted to the production of high-performance biofuels, such as biodiesel obtained from bio-oil hydrogenation and isomerization, with a higher cetane number than traditional diesel oil; another objective of our research is to develop technologies for the production of second-generation biofuels, able to convert all the biomass into energy products. Lastly, Eni is developing a carbon dioxide biofixation and biomass production process based on the use of microorganisms. Tests are well underway at the Gela Refinery with a process that uses microalgae for the biological fixation of carbon dioxide generated by the refinery's power plant, the purification of civil or industrial waste water, and the production of biomasses to be converted into biodiesel through a proprietary process. Eni also participates in the development of analysis models for second-generation bio-ethanol production systems as part of the EU's NILE project (New Improved Lignocellulosic Ethanol). Other research efforts are directed at finding solutions to specific problems of the environments where it operates: one example of this is the feasibility study for the production of renewable energy using an infesting plant found in the Niger Delta. Research and development on the use of biomasses are conducted mainly at the Novara Research Centre for Non-conventional Energies, and are supported by an extensive network of Universities, international research centers and automotive companies (refer to the Table on partnerships with Universities and research centers in the section "Living in the world").