In Short

• The partnership aims to develop Eni’s carbon capture and storage business.
• The companies are combining their financial and technical expertise.
• Critics warn that carbon capture technology could prolong the use of fossil fuels because it is costly.

Italian energy giant Eni has partnered with US asset manager BlackRock’s infrastructure fund, GIP, to develop and scale the former’s carbon capture and storage (CCUS) business.

Sources privy to the deal said GIP has agreed to acquire a 49.99% stake in Eni’s CCUS business; however, the financial details of the agreement are yet to be known.

One of Eni’s aims is to sell minority stakes in smaller businesses so it can raise money for their development and expansion.

Read More: Carbon Capture Market Forecast: Policy Shifts Fuel Global Growth

The Italian company’s CCUS business, also known as Eni CCUS Holding, manages projects including HyNet and Bacton in the UK and L10 in the Netherlands, and also holds future rights to take on Italy’s Ravenna project, which is being run in association with Italian gas grid operator Snam.

Eni aims to group these projects under one entity and expand its role in decarbonisation technologies.

GIP and Eni will share investment costs in the new partnership to develop and scale the projects.

Eni Chief Executive Claudio Descalzi said: “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 decarbonisation solutions.”

Also Read: Asia’s Heavy Industry Unites for Cross-Border Carbon Capture Drive

GIP’s CEO, Bayo Ogunlesi, 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.”

What is CCUS technology?

It works in two ways: 1) by removing carbon dioxide (CO₂) directly from industrial emissions, and 2) by capturing CO₂ before it is released into the air and storing it underground.

This technology, according to the International Energy Agency (IEA), plays a leading role in reaching global climate goals. However, some quarters have said it is very expensive and could prolong reliance on fossil fuels.

Ends/

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Source: Reuters