Eni and BlackRock’s GIP Discuss Investment in Carbon Capture Portfolio

Liverpool Bay Eni — Eni is developing the Liverpool Bay CO2 project in the HyNet network in the UK for industiral carbon capture and storage (Eni)

Italy’s Eni Group which has moved aggressively to build a presence in the emerging carbon capture, utilization, and storage (CCUS) segment reports it has entered into exclusive discussions with BlackRock’s Global Infrastructure Partners. The companies are discussing the potential sale of a 49.99 percent stake in Eni’s CCS portfolio to the BlackRock company while analysts highlight it as a demonstration of the growing investor interest in the sector.

The companies have signed an exclusivity agreement signaling progress toward a confirmatory due diligence phase says Eni. It reports the terms under negotiation call for Global Infrastructure Partners (GIP) in addition to acquiring the stake to also support investments in the Carbon Capture, Utilization, and Storage projects in the Eni portfolio. GIP, which was acquired by BlackRock in 2024, invests in infrastructure and energy including offshore wind projects.

CCUS is drawing strong interest as an application in the efforts to reach decarbonization and climate goals. Europe has been at the forefront with projects already getting underway in Norway and Denmark and the UK working to develop applications for its key industrial zones.

Eni has already assembled a portfolio including a key role in the UK’s HyNet industrial cluster project in the northwest of England. Eni is moving forward with the Liverpool Bay CCS project, having received key approvals and recently working on the four planned offshore platforms for the project.

It is also participating in the UK’s Bacton Thames Net Zero initiative that would store carbon in the depleted Hewett gas field off the North Norfolk coast on the central east coast of England and the North Sea. The project aims to store at least 10 million tonnes of CO2 per year from industrial emitters.

The portfolio also includes rights to the Ravenna CCS project in Italy which is billed as the country’s first capture project. Eni also has future rights and through its Eni Next investment arm is working with companies developing new CCS technologies. It is also participating in a European Union initiative involving 44 oil and gas companies to advance carbon storage initiatives.

Zacks Equity Research writes that the potential Eni – GIP partnership could “serve as a model for how legacy energy companies monetize transition-related assets.” It also says it signals “strong investor appetite for such infrastructure as Europe’s regulatory and climate ambitions intensify.”

Eni reports the agreement with GIP follows a thorough selection progress involving several prominent players. It said they found “strong interest,” and that it confirms the great appeal of its CCUS business and growth prospects.