By Victor Uchechukwu
Eni and Global Infrastructure Partners (“GIP”), a leading global infrastructure investor and a part of BlackRock said they have entered into an agreement related to the sale of a stake of 49.99% in Eni CCUS Holding – a leading global player in the CCUS sector (Carbon Capture, Utilization and Storage). Eni CCUS Holding has been established with the objective of maximizing the industrial potential while enhancing the value of Eni’s CCUS projects. Eni says it operates, through its subsidiaries, the Liverpool Bay and Bacton projects in the UK (with Liverpool Bay currently under construction, serving as the backbone of the HyNet industrial cluster, and holding an already-defined regulatory and commercial framework along with an existing financing plan), in addition to the L10-CCS project in the Netherlands. Energy Window International (Media) learnt that the company still has the right to acquire the 50% held by Eni of Ravenna CCS project in Italy, and will also be able to include other potential projects within a broader platform of CCUS initiatives in the medium- to long-term.
Eni’s CEO, 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 decarbonization solutions. The development of our satellite model applied to our businesses related to the energy transition is therefore successfully continuing, confirming their significant attractiveness in terms of growth potential and value creation by attracting aligned capital, as well as their effectiveness in reducing emissions.”
“We are excited to partner with Eni, a global leader in CCUS,” says Bayo Ogunlesi, GIP’s Chairman and Chief Executive Officer. “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 Eni said was a follow-up to the exclusive negotiation announced last May expressly provides Eni and GIP with an opportunity to run the company under a JV control, but closing this transaction is still contingent on the approvals provided by law, Eni said. The entry of GIP, regarded as a significant international investor Eni also said has marked a crucial step toward strengthening the business case for CCUS and the development of Eni CCUS Holding. ‘This company is an integral part of Eni’s satellite model” whose aim is particularly about highlighting the value of its energy transition businesses.
CCUS, from Eni’s standpoint, is a mature and safe technological process and is also one of the key levers for the energy transition, being currently the most efficient and effective decarbonization tool to support hard-to-abate industries in reducing their emissions.