Eni Finalizes Sale of 49.99% Stake in Carbon Capture Unit to BlackRock's Global Infrastructure Partners

Eni Seals Landmark CCS Deal with BlackRock's GIP

Italian energy giant Eni (E) has finalized the sale of a significant minority stake in its Carbon Capture and Storage (CCS) business unit. The transaction involves the divestiture of a 49.99% stake to Global Infrastructure Partners (GIP), a leading infrastructure equity fund managed by BlackRock. The completion of the deal follows the satisfaction of all necessary regulatory conditions and approvals.

Strategic Rationale and Partnership

The partnership is a critical step in Eni's strategy to position itself as a leader in the carbon management industry. By bringing in GIP, Eni secures a powerful co-investor with deep expertise in large-scale infrastructure projects and access to substantial capital. This collaboration is expected to accelerate the development and deployment of Eni's portfolio of CCS projects, which are vital for decarbonizing industrial clusters across Europe and beyond.

“The finalization of this deal secures a strong financial and strategic partner for our CCS initiatives, allowing us to scale our efforts rapidly and meet the growing demand for industrial decarbonization solutions,” a representative close to the transaction noted.

Market Impact and Sector Implications

The transaction underscores the increasing institutional investor interest in the CCS sector, which is viewed as essential for achieving global net-zero emissions targets. Infrastructure funds, such as those managed by BlackRock, are actively seeking long-duration, regulated assets that offer stable returns, making CCS projects an attractive investment class. The involvement of a major player like BlackRock's GIP validates the commercial viability and long-term potential of Eni's CCS technology and project pipeline.

The deal structure, which maintains Eni's majority control (50.01%) while sharing the capital burden and risk, allows the company to retain operational leadership while leveraging GIP's financial strength. This model is becoming increasingly common in the energy transition space, where capital-intensive technologies require robust partnerships to move from pilot phase to commercial scale.

Forward Outlook for CCS Development

The capital injection and strategic alignment are expected to significantly boost the pace of Eni's key CCS projects. These projects typically involve capturing CO2 emissions from industrial sources, transporting them, and permanently storing them in depleted oil and gas reservoirs or saline aquifers. Successful execution of these projects is crucial for hard-to-abate sectors like cement, steel, and chemicals, which cannot fully decarbonize through electrification alone.

Key benefits of the finalized partnership include:

• Accelerated Project Timelines: GIP's involvement provides the necessary funding to expedite the engineering and construction phases of major CCS hubs.
• Risk Mitigation: Sharing the financial commitment reduces Eni's exposure to the substantial upfront capital costs associated with developing large-scale storage infrastructure.
• Enhanced Credibility: The backing of a global financial institution like BlackRock enhances the credibility of Eni's CCS unit when securing off-take agreements with industrial emitters.

The transaction signals a growing trend where traditional energy companies are leveraging their subsurface expertise and infrastructure assets to build new, low-carbon business lines supported by global financial institutions.