Eni and BlackRock's Global Infrastructure Partners Finalize CCS Deal

Eni S.p.A E, a leading Italian integrated energy firm, announced the completion of the sale of 49.99% equity stake in Eni CCUS Holding, its carbon capture and storage (CCS) business, to Global Infrastructure Partners (“GIP”), a part of BlackRock. The company has mentioned that all regulatory approvals associated with the transaction have been granted.

Eni CCUS Holding maintains a wide portfolio of low-carbon projects across Europe, which includes major projects like the Liverpool Bay and Bacton developments in the United Kingdom and the L10-CCS project in the Netherlands. Additionally, the company also has the right to acquire Eni’s 50% interest in the Ravenna CCS project in Italy. It may also add new CCS projects to its portfolio in the medium-to long run, enabling its expansion with the rise in demand for carbon capture services.

Following the completion of the sale, GIP and Eni are now joint owners of the CCS business. GIP’s inclusion, as a co-investor in Eni CCUS Holdings, enhances the company's financial strength and endorses the effectiveness of Eni’s strategy in the carbon capture and storage business. The partnership also helps consolidate and advance Eni CCUS Holdings’ development plan.

Eni CCUS Holding underscores Eni’s satellite business model, which involves joining hands with strategically aligned partners to support the growth and development of its businesses while maintaining its operational involvement. This approach has attracted growth capital toward its energy transition businesses, enabling Eni to share the risk and accelerate development. GIP's involvement also serves as an external validation of the growth potential and long-term value addition of its CCS business.

Carbon capture and storage has been described as a proven technological process that plays a significant role in the energy transition. It is currently assumed to be an effective process that helps decarbonize and reduce emissions while maintaining industrial activity, particularly in sectors that are difficult to decarbonize.

E’s Zacks Rank and Key Picks

Eni currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energy sector are Oceaneering International OII, Subsea7 S.A. SUBCY and FuelCell Energy FCEL. While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Subsea7 and FuelCell carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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This article originally published on Zacks Investment Research (zacks.com).

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