Eni and Fiat Chrysler Automobiles (FCA) are collaborating on new projects to help drive down carbon emissions caused by road vehicles.
The Italian energy and automotive giants signed a groundbreaking agreement this week in the presence of the country's Prime Minister Paolo Gentiloni.
Renewing their joint commitment to a low carbon future, the two companies are promising to explore the use of gas in transport and the temporary storage of C02 from internal combustion engines.
They are also conducting tests on 'green diesel', a form of fuel that includes a higher concentration of vegetable oil and could be used without any modfication to a standard diesel engine.
"It is a strategic path for Eni and signifies our commitments in a number of areas," said its Chief Executive Claudio Descalzi.
"We will push our innovative projects with FCA forward, aiming to make a significant contribution in terms of emissions reduction in the short term, as well as ambitious, though realistic, future objectives."
FCA's chief executive Sergio Marchionne added: "Our collaboration with Eni marks a big step forward. I am delighted that we can also count on the support of the Italian government.
"This is a shared goal that reflects a sense of responsibility and a commitment to the world we want to leave to future generations."