Eni in talks with GIP for sale of 49.99% of carbon capture unit

By Francesca Landini

MILAN (Reuters) -Eni has entered exclusive talks to sell a 49.99% stake in its carbon capture, utilisation and storage (CCUS) business to BlackRock's infrastructure fund GIP, the Italian energy group said on Tuesday.

The move is part of Eni's broader strategy to develop dedicated units - or satellites - and sell minority stakes in them to fund their growth.

That allows Eni to expand its low-carbon businesses while preserving its capacity to invest in oil and gas activities, Chief Transition and Financial Officer Francesco Gattei recently said.

Eni CCUS Holding includes the Hynet and Bacton projects in Britain and L10 in the Netherlands, and has future rights to acquire Italy's carbon capture project in Ravenna.

According to the agreement under negotiation, GIP will not only acquire a stake but also support investments to develop the CCUS projects, Eni said in a statement.

The Italian group said the agreement came after a selection process among several suitors.

Sources told Reuters in March that GIP, HitecVision, Macquarie, Italy's Snam and Thailand's PTT Exploration and Production Public Company had presented non-binding bids for the business.

CCUS 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 say it risks prolonging the use of fossil fuels and question its commercial viability.

(Reporting by Francesca Landini, editing by Gavin Jones and Jan Harvey)