BlackRock Gains Ownership in Eni's Carbon Capture Venture
Global Infrastructure Partners (GIP) and Eni Partnership to Accelerate Carbon Capture and Storage (CCS) Projects
In a significant move towards decarbonization, BlackRock's infrastructure investment unit, Global Infrastructure Partners (GIP), has acquired a 49.99% co-control stake in Eni's CCUS business, Eni CCUS Holding. This partnership aims to accelerate the development of CCS projects, focusing on areas such as decarbonization, energy security, digital infrastructure, and supply chain transitions.
Eni CCUS Holding includes several large-scale European CCS projects, such as the Liverpool Bay project underlying Hynet and Bacton. Each project targets reducing carbon emissions by 10 million tonnes annually by 2030. The Liverpool Bay project is part of Eni CCUS Holding and is associated with Hynet, a project aimed at decarbonizing industrial clusters. The UK-based Liverpool Bay project is not the only venture in Eni CCUS Holding; the L10 project in the Netherlands is another significant project within the portfolio.
The sale of Eni's CCUS business stake is part of Eni's "satellite model" to attract capital for growth and preserve free cash flow from traditional businesses for shareholder distribution. This model has proven successful in the energy transition businesses, as stated by Eni CEO, Claudio Descalzi, in attracting aligned capital and reducing emissions.
GIP's Chairman and CEO, Bayo Ogunlesi, expressed excitement about partnering with Eni, a global leader in CCUS. He stated that this partnership reaffirms GIP's commitment to serve growing market needs for affordable, decarbonized energy and products. GIP's experience in midstream infrastructure and Eni's technical, operational, and industrial capabilities will help accelerate the deployment of CCS solutions at meaningful scale.
The partnership captures opportunities to provide critical infrastructure to help decarbonize hard-to-abate industries. Eni CCUS Holding's projects are not limited to the current ventures; the platform may include other potential projects within a broader platform of CCUS initiatives in the medium- to long-term.
The agreement between GIP and Eni followed an announcement in May regarding exclusive negotiations for the transaction. It is expected that the partnership between GIP and Eni will expand further over time, contributing significantly to the global efforts towards decarbonization.
Interestingly, Eni itself is the other co-owner of the Eni CCUS business unit acquired by GIP. This partnership marks a significant step forward in the global fight against climate change, leveraging the combined strengths of GIP and Eni to accelerate the development and deployment of CCS solutions.
BlackRock acquired GIP in 2024 for $12.5 billion, making it a powerful player in the infrastructure investment sector. This latest acquisition further cements BlackRock's commitment to sustainable and decarbonized infrastructure investments.
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