MILAN, Dec 18 (Reuters) - Eni has completed the sale of a 49.99% stake in its carbon capture and storage unit to BlackRock's infrastructure fund Global Infrastructure Partners, giving the two groups
Eni and BlackRock Secure Joint Control of Carbon Capture Unit
MILAN, Dec 18 (Reuters) - Eni has completed the sale of a 49.99% stake in its carbon capture and storage unit to BlackRock's infrastructure fund Global Infrastructure Partners, giving the two groups joint control of the business, it said on Thursday.
The deal is part of Eni's strategy to spin off specific businesses and bring in partners to help fund investments for those units. It hands over a bigger share than in previous deals regarding its low-carbon units Plenitude and Enilive when it limited the share of partners to 30%.
Eni's CCUS Holding operates the Liverpool Bay and Bacton projects in Britain, in addition to the L10-CCS project in the Netherlands.
The CCUS unit also has the right to acquire the 50% held by Eni in the carbon capture project it launched with gas grid operator Snam in Italy. Additional projects could be added in the medium term, the Italian group said, without disclosing the financial value of the deal.
"This strategic partnership enhances the industrial potential and the value of the portfolio projects, reinforces Eni's ambition to be a leading global player in the carbon capture and storage sector, and paves the way for future growth opportunities," Eni said in a statement.
Carbon capture and storage technology removes CO2 produced by industrial processes from the atmosphere or captures it at the point of emission and stores it underground.
The International Energy Agency says the technology can play a vital role in achieving global climate goals. But critics have questioned its commercial viability and say that it can prolong the use of fossil fuels.
(Reporting by Francesca Landini; editing by Barbara Lewis)
