Blackrock Buys Stake In Eni Carbon Capture Platform

Investment giant BlackRock’s infrastructure investment arm, Global Infrastructure Partners (GIP), has completed a significant deal with Italian energy company Eni. They have acquired a 49.99% stake in Eni’s Carbon Capture, Utilization and Storage (CCUS) business, known as Eni CCUS Holding. This deal is a major step forward for both companies as they work to expand carbon capture technologies and build key infrastructure to reduce emissions in tough industries across Europe.

This transaction follows Eni’s announcement in May that it entered exclusive talks with GIP after a careful selection process. Several top international investors showed strong interest, highlighting the growing global recognition of carbon capture as a crucial tool for achieving net-zero targets. This deal is one of the largest private investment commitments in Europe’s CCUS sector and reflects the surging demand for long-term solutions to reduce emissions.

For Eni, this transaction supports its broader “satellite model.” This strategy aims to attract capital partners for its new transition-focused businesses. It helps Eni unlock value and secure funds for growth in low-carbon and renewable ventures while allowing profits from its traditional oil and gas operations to continue benefiting shareholders. Essentially, this approach enables Eni to showcase the value of its energy transition assets without jeopardizing the financial health of its established businesses.

Eni CEO Claudio Descalzi commented on the deal, noting its success in attracting aligned capital and speeding up climate-focused projects. He said, “The development of our satellite model applied to our businesses related to the energy transition is continuing successfully, confirming their significant attractiveness in terms of growth potential and value creation by attracting aligned capital, as well as their effectiveness in reducing emissions.”

Eni CCUS Holding already oversees some of the most ambitious carbon capture projects in Europe. Its notable initiatives include the Liverpool Bay development, which supports the UK’s HyNet project, and the Bacton project. Both aim to capture up to 10 million tonnes of carbon dioxide annually by 2030. The business also runs the L10 project in the Netherlands, targeting around 5 million tonnes of carbon dioxide per year. Additionally, Eni CCUS Holding has the rights to acquire Eni’s 50% stake in the Ravenna CCS project in Italy, a joint venture with Snam that aims to become a key hub for carbon capture in southern Europe.

The platform’s goal is to not only expand these projects but also explore new CCUS initiatives over time. With industrial clusters across Europe seeking ways to reduce emissions, the demand for carbon capture hubs is rising swiftly. By combining resources, technical expertise, and operational capabilities, the Eni-BlackRock partnership looks to quicken the commercial rollout of CCUS to meet important climate goals.

The involvement of GIP as a co-owner is significant due to the firm’s experience in large-scale infrastructure investments. BlackRock acquired GIP in 2024 for $12.5 billion, focusing on opportunities in decarbonization, energy security, digital infrastructure, and supply chain resilience as key drivers for long-term growth. This acquisition not only broadened BlackRock’s infrastructure reach but also provided a way to channel institutional capital into transformative energy projects.

Bayo Ogunlesi, Chairman and CEO of GIP, emphasized the synergy between the partnership with Eni and the opportunities that CCUS offers. He stated, “We are excited to partner with Eni, a global leader in CCUS. GIP’s experience in midstream infrastructure, along with Eni’s technical, operational, and industrial skills, will help accelerate the deployment of CCUS solutions at a meaningful scale, supporting our commitment to meet the growing market needs for affordable, decarbonized energy and products.”

Carbon Capture, Utilization, and Storage has gained recognition as a key technology for achieving net-zero emissions, especially in heavy industries like cement, steel, and chemicals, where reducing emissions with electrification or renewables is often not feasible. By capturing carbon dioxide at the source and either using it in industrial processes or permanently storing it underground, CCUS projects can play a crucial role in bridging the current energy systems and the shift to a low-carbon future.

The agreement between Eni and BlackRock shows confidence in the scalability and commercial potential of CCUS, a field that has recently faced challenges like high costs and policy uncertainties. With strong support from institutional investors and growing government backing in Europe, the sector is now entering a phase of rapid development. The Eni CCUS platform, reinforced by this partnership, is set to become a leading player in Europe’s decarbonization efforts and may serve as a model for cooperation among traditional energy companies and financial firms in creating the next generation of energy infrastructure.

As countries strive to meet their 2030 and 2050 climate targets, partnerships like this one will be vital in mobilizing the billions of dollars needed to transform the energy landscape. For BlackRock, this investment continues its shift toward sustainable infrastructure, while for Eni, it is a key milestone in balancing shareholder value with climate responsibility. Together, these two companies are well-positioned to influence the future of carbon capture in Europe and beyond.