Eni CCUS Strategy: $1.2 B GIP Deal, 6 Mt Offtake Agreements, and 3 Hub Projects (2025)

Eni’s Commercial-Scale CCUS Projects Signal a Shift from DAC Pilots

In 2025, Italian energy major Eni executed a decisive strategic pivot to prioritize a commercial-scale, profitable point-source Carbon Capture, Utilization, and Storage (CCUS) business, deferring direct investment in nascent and high-cost Direct Air Capture (DAC) projects. This pragmatic approach focuses on building the essential transport and storage infrastructure that is a prerequisite for both current industrial decarbonization and the future deployment of any large-scale carbon removal technology. This is distinct from the activities of smaller, pure-play CDR companies focused exclusively on DAC technology.

Prioritizing Infrastructure Over Novelty

Eni’s pivot represents a strategic focus on monetizing proven technology to build foundational assets. Unlike the 2021-2024 period, which saw significant industry focus on DAC pilot projects, Eni’s 2025 actions centered on commercial execution.

• The company’s establishment of a dedicated carbon capture business unit in February 2025 signaled a formal move to treat carbon management as a core business pillar, shifting from exploration to commercialization.
• This strategy targets the development of large-scale transport and storage infrastructure, such as the Liverpool Bay CCS project, which can serve multiple industrial emitters and create a network effect that de-risks future investments.
• The broader market context supports this measured approach, as DAC technology in 2025 remained characterized by high operational costs, estimated between $135 and over $600 per tonne, and a global operational capacity of only around 10, 000 tonnes per year.

Securing Revenue with Offtake Agreements

A crucial element of Eni’s commercialization strategy is securing long-term revenue streams before committing major capital. This de-risking mechanism is critical for building a self-sustaining business.

• In 2025, Eni reported having secured advanced offtake agreements for nearly 6 million tonnes (Mt) of CO₂ removal.
• These agreements provide essential revenue visibility, underpinning the large capital expenditures required for building capture plants and storage sites, a commercial model not yet mature in the voluntary DAC market.

$1.2 B GIP Investment Validates Eni’s Point-Source CCUS Business Model

Eni’s ability to attract approximately $1.2 billion (€1 billion) from Black Rock’s Global Infrastructure Partners (GIP) for its new CCUS division provides powerful market validation for a strategy centered on proven point-source capture over speculative DAC ventures. This transaction confirms that institutional capital is flowing toward tangible, revenue-generating decarbonization infrastructure projects with clear execution pathways.

Institutional Capital for Proven Models

The deal structure highlights a preference for de-risked assets in established industrial corridors. This contrasts with the financing routes for other carbon capture approaches, such as those taken by GE Vernova, which involve different risk profiles.

• GIP’s investment for a 49.99% stake in the venture is not merely funding but a strategic endorsement of Eni’s plan to develop a portfolio of CCUS assets in the UK, Italy, and the Netherlands.
• This large-scale infrastructure equity differs from DAC financing in 2025, which still largely relied on venture capital, government grants, and corporate pre-purchase agreements rather than project finance from major infrastructure funds.

Targeted Pilots for Geographic Expansion

Alongside its major European investments, Eni is using smaller, targeted investments to explore new growth markets with a capital-efficient approach.

• Eni is developing a $25 million CCS pilot project in Egypt, a strategic move to enter the emerging MENA carbon management market.
• This pilot allows the company to build local partnerships and gain operational experience in a new regulatory environment without committing the significant capital required for a full-scale hub.

Table: Eni Carbon Management Investments and Ventures (2025)

Eni’s Strategic Partnerships: GIP, MHI, and Commonwealth Fusion Systems

Eni’s 2025 partnerships reveal a multi-pronged strategy: securing capital and expertise for its core CCUS business through the GIP alliance, deploying best-in-class technology from partners like Mitsubishi Heavy Industries (MHI), and making long-term investments in next-generation energy sources with Commonwealth Fusion Systems (CFS).

GIP Alliance for European Hubs

The partnership with GIP is the foundation of Eni’s commercial CCUS strategy, designed to accelerate development and share financial risk. This joint venture leverages Eni’s operational and subsurface expertise with GIP’s financial acumen and access to capital markets.

Technology and Future Energy Partnerships

Beyond financing, Eni is forming alliances to secure proven technology for current projects and access breakthrough solutions for the future. These partnerships are critical for maintaining a technological edge and diversifying its long-term energy portfolio.

• The operational start of a CO₂ capture plant in Italy utilizing MHI’s advanced KM CDR Process™ underscores Eni’s focus on implementing efficient, commercially ready capture solutions for industrial emissions.
• A landmark offtake agreement worth over $1 billion signed with CFS in September 2025 ensures Eni will be a primary customer for power from the first commercial fusion plant, highlighting a long-term vision beyond fossil fuels and conventional renewables.

Table: Eni Key Commercial Partnerships (2025)

European Hubs: Eni Focuses CCUS Growth in UK, Italy, and Netherlands

In 2025, Eni concentrated its commercial-scale CCUS development in key European industrial regions, specifically the UK, Italy, and the Netherlands, where dense industrial emissions sources are located near viable geological storage sites. This hub-and-spoke model is designed to create economies of scale and establish a dominant market position, while smaller pilot projects are used to establish a strategic foothold in emerging markets.

UK and Italy as Anchor Projects

Eni’s strategy is anchored by large-scale projects in the UK and its home market of Italy, leveraging existing infrastructure and strong government support for decarbonization.

• The UK is a primary focus, validated by reaching financial close in April 2025 on the Liverpool Bay CCS project. With an initial capacity of 4.5 Mtpa, this project utilizes depleted offshore gas fields for storage.
• In Italy, the operational Casalborsetti project, which captures 0.25 Mtpa, serves as a proof-of-concept for the much larger Ravenna CCS hub, central to Italy’s national decarbonization goals.

MENA as a Strategic Growth Market

While Europe remains the core focus, Eni is positioning itself for future growth in the Middle East and North Africa (MENA) region. The company is using a cautious, pilot-first approach to navigate the region’s unique market dynamics and regulatory frameworks.

• The $25 million pilot project in Egypt is a calculated entry into the MENA market, allowing Eni to build local partnerships and operational capabilities before committing to larger-scale developments.

Technology Deployment: Eni Deploys Mature CCUS While Monitoring DAC

Eni’s 2025 technology strategy was defined by the deployment of commercially proven point-source capture solutions while maintaining only a venture-level interest in earlier-stage technologies like DAC. This bifurcation allows the company to generate revenue and build infrastructure today using reliable technology, while keeping a low-cost option on future breakthroughs.

Point-Source Capture at Commercial Scale

The company’s activities in 2025 demonstrated a clear preference for technologies that are ready for industrial-scale application. This represents a strategic maturation from the more exploratory work common in the 2021-2024 period.

• The operational start of a capture plant in Italy using MHI’s KM CDR Process™ and the continued operation of the Casalborsetti project show a focus on deploying solutions with proven efficiency and reliability.

DAC Remains a Venture Play

Eni’s engagement with DAC remains indirect and strategic, providing insight into the technology’s evolution without exposure to the high costs and technical risks of first-of-a-kind commercial projects.

• Investment in companies like Cool Planet through its corporate venture arm, Eni Next, allows Eni to monitor the DAC cost curve and technology development from a distance.

SWOT Analysis for Eni’s 2025 CCUS Strategy and Infrastructure Focus

Eni’s 2025 strategic pivot to commercial-scale CCUS capitalizes on its operational strengths and first-mover advantage in key European hubs, though it faces threats from regulatory uncertainty and competition. The validation from the GIP investment and secured offtake agreements significantly strengthens its position, turning a high-capital opportunity into a de-risked business plan.

Table: SWOT Analysis for Eni’s 2025 CCUS Strategy

Eni’s 2026 Outlook: Executing the GIP Partnership and Expanding Hubs

The critical factor for Eni in the year ahead is the successful execution of its GIP partnership, translating the $1.2 billion capital injection into final investment decisions (FIDs) for its key European CCUS hubs. The company’s ability to move these projects from financial close to construction will determine its leadership in the European carbon management market.

Key Signals to Monitor

Progress in the next 12-18 months will depend on converting strategic plans into tangible project milestones and firm commercial contracts.

• Final Investment Decisions: Watch for FIDs on the Ravenna CCS hub in Italy and the start of construction for the Liverpool Bay project in the UK. Delays could signal challenges with finalizing offtake agreements or securing final regulatory approvals.
• Offtake Contract Conversion: Monitor announcements related to the nearly 6 Mt of advanced offtake agreements. The conversion of these into firm, long-term contracts and the identity of the industrial counterparties will be a key indicator of market demand.
• MENA Pilot Progress: The development of the $25 million Egypt pilot will serve as a bellwether for Eni’s ability to replicate its European hub strategy in new growth markets with different geological and regulatory conditions.

The questions your competitors are already asking

This report covers one angle of Eni’s carbon capture commercial strategy. The questions that matter most depend on your work.

• Eni competitors carbon capture Europe
• Ravenna carbon capture project timeline
• UK carbon capture project funding
• Industrial customers for carbon capture hubs

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