This strategic partnership aims to accelerate the development of large-scale decarbonization solutions for hard-to-abate industries, leveraging the combined expertise of both companies.
In a significant move to advance the energy transition, Italian energy major Eni and Global Infrastructure Partners (GIP), a part of BlackRock, have signed an agreement for the sale of a 49.99% stake in Eni CCUS Holding. The new entity was established to consolidate and enhance the value of Eni's portfolio of Carbon Capture, Utilization and Storage (CCUS) projects. The partnership will see Eni and GIP holding joint control of the company.
Eni CCUS Holding's portfolio includes several high-profile projects. The company, through its subsidiaries, operates the Liverpool Bay and Bacton projects in the UK. The Liverpool Bay project, currently under construction, is a critical component of the HyNet industrial cluster, with a well-defined regulatory and commercial framework and an existing financing plan already in place. The company also holds a stake in the L10-CCS project in the Netherlands. In addition, the agreement grants Eni CCUS Holding the right to acquire Eni's 50% share of the Ravenna CCS project in Italy, and it will serve as a platform for incorporating other potential CCUS initiatives in the future.
The partnership with GIP, an influential international investor, is a crucial step for Eni's long-term energy strategy. Claudio Descalzi, Eni’s CEO, emphasized the strategic importance of the deal. “The decision to consolidate our CCUS global portfolio into a dedicated entity, and the entry of GIP as a strategic partner, will further enhance our ability to deliver large-scale, technically advanced decarbonization solutions,” he stated. Descalzi also highlighted the continued success of Eni’s “satellite model,” which aims to attract aligned capital and highlight the value and growth potential of its energy transition businesses while effectively reducing emissions.
Bayo Ogunlesi, GIP’s Chairman and Chief Executive Officer, expressed enthusiasm for the collaboration. He commented, “GIP’s experience in midstream infrastructure, combined with Eni’s technical, operational and industrial capabilities, will help accelerate the deployment of CCUS solutions at meaningful scale, furthering our commitment to serve growing market needs for affordable, decarbonized energy and products.” The agreement, which follows exclusive negotiations that were announced in May, is subject to customary regulatory approvals.
This partnership underscores the increasing confidence in CCUS as a viable and essential technology for achieving global decarbonization goals. CCUS is a mature and safe technological process recognized as one of the most effective tools for supporting hard-to-abate industries in their efforts to reduce emissions.
