Eni DAC Initiatives for 2025: Key Projects, Strategies and Partnerships
Eni’s Strategic Pivot: How Carbon Capture Is Evolving from Cost Center to Commercial Powerhouse
From 2021 to today, Italian energy major Eni has fundamentally transformed its approach to carbon capture and storage (CCS). What began as a series of targeted, technology-proving projects has rapidly evolved into a sophisticated, commercially-driven business poised for massive scale. By analyzing Eni’s activities across two distinct periods—2021-2024 and 2025-present—a clear narrative emerges: the strategic maturation of CCS from an operational decarbonization tool into a standalone, valuable asset class attracting major institutional capital and enabling new low-carbon revenue streams. This analysis dissects Eni’s investments, partnerships, and technological milestones to reveal how the company is positioning itself as a leader in the industrial-scale carbon management economy.
From Pilot Projects to a Monetized Business Unit
Between 2021 and 2024, Eni’s carbon capture strategy was defined by foundational project development and technology validation. The company focused on establishing tangible, operational assets, such as Italy’s first CCS project in Ravenna with partner Snam, which began by capturing 25,000 tons of CO2 annually from Eni’s own natural gas plant. This period saw Eni securing specific technologies through licensing (MHIENG’s KM CDR Process™) and investing in novel approaches through startups like Mantel Capture. Applications were centered on point-source capture from hard-to-abate industrial facilities, including natural gas processing and waste-to-energy plants via a partnership with Enfinium. The primary goal was to prove the viability of CCS in core operational settings.
The inflection point arrived in 2025. The strategy shifted dramatically from project execution to building and monetizing a scalable business. Eni established a dedicated division for CCS and entered exclusive talks to sell a nearly 50% stake in this business to Global Infrastructure Partners (GIP) for approximately $1.2 billion. This move signals that the CCS unit is now viewed as a mature, bankable asset. Concurrently, the range of commercial applications expanded significantly. Eni unveiled plans to offer “blue power”—low-carbon electricity from gas-fired plants integrated with CCS—to external customers, exemplified by its landmark partnership with Khazna Data Centers. This transforms CCS from an internal decarbonization necessity into a commercial enabler for new markets, representing a fundamental shift in the technology’s role within Eni’s broader energy transition strategy.
Strategic Capital Allocation: Fueling the CCS Scale-Up
Eni’s investment posture reflects its strategic pivot from early-stage project funding to large-scale capital deployment aimed at building an integrated low-carbon energy system. In the 2021-2024 timeframe, investments were targeted and project-specific, such as the $25 million CCS pilot in Egypt and seed-stage funding for technology startups like Mantel Capture. These were foundational investments designed to build technical capability and de-risk the technology. From 2025 onwards, the scale of capital allocation has grown by orders of magnitude. The commitment of €24 billion for energy production in North Africa and a specific €8 billion for Libya, regions where Eni is actively pursuing decarbonization initiatives, demonstrates a new level of financial commitment. This massive capital injection is not just for hydrocarbon production but is intertwined with the company’s strategy to enhance energy security while deploying decarbonization solutions like CCS.
Table: Eni’s Strategic Investments (2022 – 2025)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| North Africa (Algeria, Libya, Egypt) | Next 4 Years (from 2025) | Investment of €24 billion ($26.24 billion) to boost energy production, supporting Eni’s integrated strategy that includes decarbonization efforts in key regions. | Arab News |
| Libya | Future Investment (from 2025) | An €8 Billion investment intended to strengthen economic ties and enhance energy security, aligning with Eni’s broader regional decarbonization goals. | Energy Capital Power |
| Mantel Capture | 2024 | Led an early-stage funding round (amount undisclosed) for a climate tech startup using molten salts for carbon capture, securing access to innovative, next-generation technology. | Reuters |
| Meleiha Field CCS Project | 2022 | A $25 million project in Egypt to capture and store 25,000-30,000 tonnes of CO2 annually, establishing an operational foothold for CCS in North Africa. | CCUS Expo |
A Widening Web of Alliances: From Technology to Finance
Eni’s partnership strategy has evolved in lockstep with its technical and commercial ambitions. The 2021-2024 period was characterized by alliances focused on technology and project delivery. Key partnerships with Snam to build the Ravenna CCS project, MHIENG to license capture technology, and the UK government to define commercial models were instrumental in getting projects off the ground. In 2025, the focus of partnerships shifted towards finance, market creation, and scale. The proposed deal with GIP is the centerpiece, designed to bring in a world-class infrastructure investor to co-fund and accelerate CCS development. The alliance with Khazna Data Centers creates a new end-market for CCS-enabled power, while partnerships with Azimut and Ares Management secure billions in capital for Eni’s broader renewable and clean-tech ventures, freeing up resources to double down on capital-intensive areas like CCS.
Table: Eni’s Key Partnerships (2022 – 2025)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Sonatrach | July 23, 2025 | MoU to strengthen cooperation in hydrocarbons and decarbonization initiatives, reinforcing energy security and sustainable practices in North Africa. | Eni |
| Khazna Data Centers | July 11, 2025 | Partnership to develop a 500 MW AI Data Center Campus powered by Eni’s “Blue Power,” creating a new commercial market for CCS-enabled electricity. | Eni |
| Global Infrastructure Partners (GIP) | May 27, 2025 | Exclusive talks for the sale of a 49.99% stake in Eni’s CCUS business, valued at ~$1.2B, to accelerate development with a major infrastructure partner. | Carbon Herald |
| Origen and EERC | October 29, 2024 | Partnership to accelerate the commercial deployment of Direct Air Capture (DAC) technology, expanding Eni’s portfolio of carbon removal solutions. | Carbon Herald |
| Snam (Ravenna CCS Launch) | September 2024 | Commenced Phase 1 of the Ravenna CCS project, marking the launch of Italy’s first operational carbon storage initiative. | OGCI |
| UK Government (DESNZ) | November 16, 2023 | Agreement on ‘Heads of Terms’ for a CCS model, solidifying the regulatory and commercial framework for projects in the UK. | Carbon Capture Magazine |
| Enfinium | August 2023 | Agreement to capture over 100,000 tonnes of CO2 annually from waste-to-energy facilities, applying CCS to a new industrial sector. | letsrecycle.com |
| Snam (JV Formation) | December 2022 | Formed a joint venture to formally develop Italy’s first CCS project, establishing the corporate structure for the Ravenna hub. | Eni |
| Mitsubishi Heavy Industries (MHIENG) | April 2022 | Licensed MHIENG’s carbon capture technology for the Ravenna CCS project, securing a proven technical solution for Phase 1. | MHI |
From European Hubs to a Global Footprint
Eni’s geographic focus for CCS has expanded from core European markets to a more globally integrated strategy. Between 2021 and 2024, activity was concentrated in Italy, with the Ravenna project serving as the flagship, and the UK, where Eni solidified its position through a government agreement and the Enfinium partnership. This was complemented by an early-stage project in Egypt, establishing a foothold in North Africa. The period from 2025 onwards demonstrates a significant geographic expansion and intensification. The massive €24 billion investment plan for North Africa (Algeria, Libya, Egypt) positions the region as a central pillar for Eni’s future growth, including its decarbonization and CCS activities. In the UK, the Liverpool Bay CCS project has advanced to a landmark milestone, reinforcing its status as a key European hub. The proposed partnership with the US-based investor GIP and the “blue power” deal with UAE-based Khazna Data Centers demonstrate a globalized approach to financing and marketing its CCS capabilities, connecting European assets to international capital and customers.
The Journey from Demonstration to Commercial-Scale Deployment
The technological maturity of Eni’s CCS portfolio has undergone a critical evolution. The 2021-2024 period was focused on moving from concept to reality. The Ravenna CCS project, launching with a 25,000-tonne annual capacity, represented a successful transition to an operational, albeit initial, commercial phase. Licensing proven technology from MHIENG for this project while simultaneously investing in next-generation solutions like Mantel’s molten salt process showcased a strategy of deploying mature technology today while scouting for future breakthroughs. The major shift in 2025 is toward industrial-scale deployment and commercial integration. The creation of a dedicated CCS division and the progress of the Liverpool Bay project, which aims to store 10 million tonnes of CO2 annually by 2030, signifies a move to climate-relevant scale. The ultimate validation of maturity is the creation of a commercial product: “blue power” for data centers. This indicates that CCS is no longer just a technology being piloted but a core component of a new, marketable low-carbon energy service.
Table: SWOT Analysis of Eni’s Carbon Capture Strategy
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Established strong project partnerships (Snam for Ravenna), secured proven technology (MHIENG), and initiated government collaboration (UK ‘Heads of Terms’). | Created a dedicated CCS business unit, advanced large-scale projects (Liverpool Bay milestone), and demonstrated ability to attract major infrastructure investors (GIP). | Eni validated its operational capability with the Ravenna launch and then successfully structured its CCS activities into a financially attractive business unit, proving its value to external investors. |
| Weaknesses | Initial projects were at a modest scale (Ravenna Phase 1 at 25k tonnes), indicating early-stage commercialization. Business model was primarily focused on internal decarbonization. | Execution risk on massive planned scale-ups (Liverpool Bay, North Africa investments). Potential dependency on finalizing the GIP deal to fund accelerated growth. | The launch of “blue power” for data centers diversifies the business model beyond internal use, addressing a prior weakness. However, the reliance on large, single-source financing (like GIP) introduces new strategic dependencies. |
| Opportunities | Scaling up existing projects (Ravenna Phase 2), applying CCS to new industrial sectors (e.g., waste-to-energy with Enfinium), and exploring DAC technologies (Deep Sky partnerships). | Monetizing the CCS business via a significant stake sale (GIP deal valued at ~$1.2B). Tapping into new, high-demand markets like powering AI data centers (Khazna partnership). | The opportunity to monetize the CCS business, once a future goal, became a present reality with the GIP negotiations. The hypothetical market for CCS-enabled power was validated by the concrete Khazna deal. |
| Threats | Regulatory and commercial model uncertainty (necessitating the UK ‘Heads of Terms’ agreement). High cost and unproven nature of some next-gen technologies (e.g., molten salt). | Failure to finalize the GIP deal would be a major setback. Competition in the emerging “blue power” market. Long-term risk associated with 20-year LNG supply deals if the transition away from gas accelerates. | The primary threat shifted from technical and regulatory uncertainty to financial and execution risk. The finalization of the GIP deal and the successful delivery of the Khazna data center project are now critical validation points to watch. |
The Year Ahead: Financialization, Commercialization, and Scale
The most recent data signals that Eni’s CCS strategy is entering a new, decisive phase. Market actors should watch three key trends in the coming year. First is the financialization of carbon management assets. The finalization of the GIP deal will be a bellwether for the entire industry, establishing a valuation benchmark and potentially unlocking a new wave of institutional investment in CCS infrastructure. Second is the expansion of CCS-as-a-Service. The Khazna data center partnership is a blueprint. Expect Eni to aggressively pursue more “blue power” customers, positioning CCS as an essential enabler for the power-hungry digital economy. The progress of this first 500 MW campus will be a critical proof point. Finally, the narrative is now dominated by industrial scale. The ambitious targets for Liverpool Bay (10 million tonnes/year) and the massive capital allocated to North Africa signal that Eni’s focus has shifted from proving the technology to deploying it at a scale that can make a meaningful impact on its 2050 carbon neutrality goal. The ability to execute these giga-projects will be the ultimate measure of its success.
Frequently Asked Questions
What is the main difference between Eni’s carbon capture strategy before and after 2025?
Before 2025 (2021-2024), Eni’s strategy focused on proving the technology through smaller, operational projects like the initial phase of the Ravenna CCS hub. After 2025, the strategy pivoted dramatically towards commercialization and scale. Eni established a dedicated CCS business unit and sought major external investment (from GIP) to build a standalone, profitable business, moving CCS from an internal cost center to a monetized asset class.
How is Eni planning to make money from its carbon capture business?
Eni is moving beyond using CCS just to decarbonize its own operations. It is creating new commercial products, most notably “blue power”—low-carbon electricity generated from gas-fired plants integrated with CCS. The partnership with Khazna Data Centers to power a 500 MW campus is the first example of this model, turning CCS into a service that enables other industries to decarbonize.
What does the proposed deal with Global Infrastructure Partners (GIP) signify?
The proposed sale of a nearly 50% stake in its CCS business to GIP for around $1.2 billion is a major validation. It signals that Eni’s CCS unit is now considered a mature, bankable infrastructure asset by a leading global investor. This financial partnership is designed to secure the large-scale capital needed to accelerate the development of major projects and scale the business much faster than Eni could alone.
What are Eni’s key carbon capture projects and where are they located?
Eni’s flagship projects are concentrated in Europe and North Africa. The Ravenna CCS project in Italy (with Snam) is its first operational hub. The Liverpool Bay CCS project in the UK is a much larger-scale initiative. The company is also making massive capital investments (€24 billion) in North Africa (Algeria, Libya, Egypt), which includes decarbonization and CCS efforts, building on its initial $25 million pilot project in Egypt.
According to the analysis, what is the biggest challenge or threat to Eni’s CCS strategy now?
The primary threat has shifted from technological and regulatory uncertainty to financial and execution risk. A key challenge is successfully delivering on its ambitious, large-scale projects like Liverpool Bay (10 million tonnes/year) and the massive North African investment plan. Furthermore, the strategy is highly dependent on finalizing the GIP deal; a failure to do so would be a major setback to its accelerated growth plans.
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