BlackRock’s GIP Eyes 49.99% Stake in Eni’s CCUS Business

On May 27, 2025, Italian energy giant Eni signed an exclusivity agreement with BlackRock’s Global Infrastructure Partners (GIP) for the potential sale of a 49.99% co-controlling stake in Eni CCUS Holding, its carbon capture, utilization, and storage (CCUS) subsidiary. Eni CCUS Holding manages major European projects, including the UK’s HyNet and Bacton (each targeting 10 million tonnes of CO2 storage annually by 2030), the Netherlands’ L10 (5 million tonnes), and the future right to acquire Italy’s Ravenna project (4 million tonnes). The deal, part of Eni’s “satellite model” to fund growth, follows BlackRock’s $12.5 billion acquisition of GIP in 2024. With CCUS critical for decarbonizing hard-to-abate industries, can this partnership scale Europe’s carbon storage ambitions, or will regulatory and cost hurdles slow progress?

Deal Structure and Strategic Fit

The agreement initiates due diligence and final contract drafting, with GIP committing to fund CCUS project investments alongside the 49.99% stake acquisition. Financial terms remain undisclosed, but Eni’s Ravenna project alone is valued at €500-€700 million, per analyst estimates, suggesting a deal size of $1-2 billion for the stake. The process followed a competitive bidding round involving Macquarie, Snam, HitecVision, and PTTEP, highlighting CCUS’s appeal, per Eni’s May 27 release.

Eni’s “satellite model” spins off low-carbon units to attract capital while preserving cash flow from its core oil and gas operations, which generated €13.8 billion in 2024 EBITDA. Recent moves include selling a 25% stake in Enilive (biofuels) to KKR for €1.3 billion and negotiating a $2.2 billion stake sale in Plenitude (renewables) to Ares. GIP’s expertise in energy infrastructure—managing $100 billion in assets across energy, transport, and digital sectors—aligns with Eni’s goal to scale CCUS, a “mature and safe” decarbonization tool for industries like cement and steel, per Eni.

BlackRock’s GIP acquisition, finalized October 2024, aimed at decarbonization and energy security, per CEO Larry Fink. GIP’s portfolio, including stakes in Terra-Gen (1.5 GW battery storage) and EnLink Midstream (2 million tonnes CO2 storage), complements Eni’s projects, creating a $150 billion infrastructure platform.

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CCUS Projects and Impact

Eni CCUS Holding’s portfolio is a cornerstone of Europe’s carbon management:

• HyNet (UK): Captures CO2 from industrial emitters in Liverpool and Manchester, storing it in Irish Sea gas fields. Backed by £1 billion from the UK’s £21.7 billion CCUS program, it targets 10 million tonnes annually by 2030, supporting 2,000 jobs. Partners include EET Hydrogen and Heidelberg Materials.

• Bacton Thames NetZero (UK): Stores 10 million tonnes yearly in the Hewett gas field, leveraging Bacton’s gas terminal (30% of UK gas supply). Eni’s 2023 NSTA license supports 330 million tonnes total capacity.

• L10 (Netherlands): Acquired via Eni’s $4.9 billion Neptune Energy buyout in 2024, it targets 5 million tonnes yearly, tied to the Aramis CCS project for cross-border CO2 transport.

• Ravenna (Italy): A joint venture with Snam, it could store 4 million tonnes by 2030, pending regulatory clarity. TotalEnergies’ 263 MW solar project shows Italy’s renewable push, but CCUS lags.

These projects could capture 29 million tonnes of CO2 annually by 2030, 7% of the EU’s 400 million-tonne CCUS target, per IEA. CCUS costs $50-$150/tonne, making Eni’s portfolio a $1.5-$4 billion annual market by 2030, with carbon credits under EU ETS (€40/tonne) boosting viability.

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Why It Matters

CCUS is critical for hard-to-abate sectors, which emit 30% of global CO2 (14 Gt in 2024). Europe’s CCUS market could hit $20 billion by 2030, per BloombergNEF, driven by policies like the EU’s Net Zero Industry Act and UK’s CCUS clusters. Eni’s projects align with Snam’s $2B SLB and Alt Carbon’s $12M CDR, reflecting a carbon management boom. GIP’s investment signals confidence in CCUS’s long-term returns, with 10-15% IRR expected, per McKinsey.

For BlackRock, the deal expands its $50 billion climate infrastructure portfolio, including Decarbonization Partners with Temasek, targeting low-carbon solutions like Antora Energy’s thermal storage. It counters ESG backlash, as seen in 2025 U.S. policy shifts, by doubling down on transition finance.

Risks and Challenges

• Costs: CCUS projects require $1-$2 billion upfront per 5 million tonnes, per IEA. Eni’s $12.4 billion 2025-2029 capex may strain without GIP’s funding.

• Regulation: Italy’s CCUS framework is immature, delaying Ravenna. The EU’s 50 million-tonne storage goal by 2030 needs clearer incentives, per Bruegel.

• Scalability: Only 50 million tonnes of global CO2 are captured yearly vs. 10 billion needed by 2050, per IPCC. Pipeline and storage constraints, as seen in Aramis, add delays.

• ESG Risks: BlackRock faces scrutiny for fossil fuel ties, with 40% of its $10 trillion AUM linked to oil and gas, per Greenpeace. GIP’s gas pipeline investments could spark greenwashing claims.

• Policy: Trump’s 2025 deregulation may weaken global carbon markets, impacting ETS prices and CCUS economics, as seen in Columbia River salmon cuts.

What’s Next?

Due diligence and deal finalization are expected by Q3 2025, with GIP’s investment likely starting with HyNet and Bacton, online by 2027. Eni aims to add 10 million tonnes of CCUS capacity by 2035, potentially including Norwegian or Middle Eastern projects. GIP’s role could expand to $5 billion in co-investments by 2030, per analyst projections.

BlackRock’s GAIIP partnership with Microsoft and MGX, targeting $100 billion for AI and energy infrastructure, suggests GIP’s CCUS stake is part of a broader decarbonization play. WTTC’s ESG Policy Tracker highlights regulatory complexity, which Eni and GIP must navigate.

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