Eni Green Hydrogen Strategy, £2 B Hy Net CCS Project, >$1 B Fusion PPA, and 5.5 GW Renewables Target (2025)

Pragmatic Diversification, Eni Prioritizes CCS and Biofuels Over Green H 2 Projects

An analysis of Eni’s activities in 2025 reveals a deliberate and pragmatic energy transition strategy that prioritizes significant capital toward commercially mature technologies like biofuels and Carbon Capture and Storage (CCS) over immediate, large-scale green hydrogen FIDs. While competitors advance on pure-play green hydrogen production, Eni’s 2025 milestones show a focus on building foundational infrastructure and securing long-term value in parallel low-carbon sectors, positioning it as a strategic, if cautious, player in the hydrogen economy.

• In April 2025, Eni committed to managing approximately £2 billion in supply chain contracts for the Hy Net North West CCS project, a significant investment in infrastructure that primarily supports blue hydrogen and industrial decarbonization, rather than green hydrogen production.
• The company’s expansion in biofuels is highlighted by its joint venture with LG Chem in May 2025 to develop a new biorefinery in South Korea. These facilities are hydrogen-intensive, creating a captive demand sink that can be served by grey hydrogen today and green or blue hydrogen in the future.
• Unlike some peers, Eni did not announce any major Final Investment Decisions (FIDs) or the commissioning of new standalone green hydrogen plants during 2025. Its flagship domestic project in Ravenna, in partnership with Herambiente, is framed as a multi-faceted energy transition hub, not a dedicated green hydrogen facility.
• In contrast, competitor Total Energies reported in February 2025 its project to decarbonize its Normandy and Antwerp sites with green hydrogen from a new 130 MW electrolyser, underscoring the different strategic paths being taken by European energy majors.

Green Hydrogen Faces Major Implementation Gap

This chart directly supports the headline of Section 0. The existence of a ‘major implementation gap’ for green hydrogen provides a clear rationale for Eni’s ‘pragmatic diversification’ strategy, which prioritizes more mature technologies like CCS and biofuels in the near term.

(Source: Nature)

>$3 Billion in Commitments, Eni Strategic Investments in CCS and Fusion Energy

Eni’s significant capital commitments in 2025 were allocated to long-duration infrastructure projects and next-generation energy technologies, underscoring a strategy that favors large-scale engineering projects over smaller, modular green hydrogen deployments for the current year. The financial outlays are substantial and targeted at assets with long operational lifespans and systemic impact on decarbonization.

• Eni’s most forward-looking investment was its Power Purchase Agreement (PPA) with Commonwealth Fusion Systems (CFS), valued at over $1 billion. Signed in September 2025, this agreement secures offtake from a future fusion power plant, representing a long-term bet on a disruptive, zero-carbon energy source.
• The commitment to manage £2 billion in contracts for the Hy Net Carbon Capture project in the UK represents Eni’s largest single decarbonization investment of the year. This leverages the company’s core competencies in subsurface management and large-scale project execution.
• These targeted investments fall within Eni’s overall 2025 gross capital expenditure plan of below €9 billion, indicating that CCS and fusion received a significant share of the company’s low-carbon budget.

Table: Eni Major Capital Commitments (2025)

Eni 4 Key Alliances to Secure LNG, Biofuels, and Future Energy (2025)

In 2025, Eni actively pursued strategic partnerships to strengthen its LNG and biofuels businesses, secure future clean energy offtake, and expand its geographic footprint in key growth regions. These collaborations are diverse and aimed at leveraging partner expertise while de-risking entry into new markets and technologies.

• In November 2025, Eni and Malaysian state-owned Petronas signed a binding investment agreement to form a 50:50 joint venture. This JV combines upstream assets in Indonesia and Malaysia, creating a powerful platform for future clean energy collaboration in Southeast Asia.
• Eni strengthened its position in the global LNG market in June 2025 by signing an agreement with Argentina’s state-owned YPF to advance a $50 billion LNG project toward a Final Investment Decision, securing future gas supply.
• To expand its biofuels portfolio, Eni formed a joint venture with LG Chem in May 2025 to develop a new biorefinery in South Korea, leveraging its refining technology and feedstock sourcing capabilities.
• In February 2025, Eni signed an agreement with UAE-based clean energy leaders Masdar and TAQA. This tripartite initiative is focused on establishing a long-term offtake agreement, deepening Eni’s integration into the Middle East’s clean energy ecosystem.

Table: Eni Strategic Partnerships (2025)

UK and Italy Focus, Eni Builds Decarbonization Hubs and Infrastructure

Eni’s geographic strategy in 2025 was characterized by a concentration of heavy infrastructure investment in Europe, particularly the UK and Italy, aimed at creating large-scale decarbonization hubs. Simultaneously, the company pursued resource and market access abroad through strategic partnerships in Asia, South America, and the Middle East, reflecting a dual approach of building at home while securing supply abroad.

• United Kingdom: The most significant geographic focus for Eni’s low-carbon capital in 2025 was the UK. The £2 billion commitment to the Hy Net Carbon Capture and Storage project positions Eni as a critical operator in one of Europe’s premier industrial decarbonization clusters, leveraging its extensive experience in the Liverpool Bay area.
• Italy: Domestically, Eni’s efforts are centered on transforming its industrial heritage into future energy assets. The Ponticelle project in Ravenna, developed with Herambiente, exemplifies this strategy of creating integrated energy hubs focused on biofuels and other circular economy solutions.
• Global Reach: Beyond Europe, Eni’s 2025 partnerships extended its strategic reach. The LNG agreement with YPF in Argentina targets future energy supply, the Petronas JV secures a strong operational base in Southeast Asia, and the Masdar/TAQA deal provides a foothold in the UAE’s rapidly growing clean energy market.

Technology Prioritization, Eni Focuses on CCS and Biofuels, H 2 Remains Developmental

Eni’s 2025 technology strategy clearly prioritized the commercial scaling of technologies where it holds a competitive advantage and which have established commercial pathways, such as CCS and biofuels. In contrast, green hydrogen appears to remain in a developmental phase within the company, being explored in pilot or integrated projects rather than being the subject of standalone, large-scale investment.

• Carbon Capture & Storage (CCS): This technology is at the forefront of Eni’s 2025 activities. The massive commitment to the Hy Net project shows Eni is moving CCS from pilot to large-scale deployment, leveraging its core subsurface and engineering expertise.
• Biofuels: With a new biorefinery JV with LG Chem, Eni is actively expanding its capacity in a sector it has already commercialized. This technology provides near-term emissions reductions and aligns with circular economy principles.
• Green Hydrogen: No major FIDs or capacity announcements were made in 2025. Projects like the one in Ravenna with Herambiente suggest hydrogen is being explored as part of a wider suite of energy solutions for industrial hubs, not yet as a standalone, large-scale product.
• Nuclear Fusion: The $1 billion-plus PPA with Commonwealth Fusion Systems represents a high-risk, high-reward bet on a disruptive future technology. It indicates a strategic vision that looks beyond current transition technologies to a potential long-term, zero-carbon baseload power source.

Blue Hydrogen Projects Lead in Scale and Cost

This chart supports the section’s claim that green hydrogen ‘remains developmental’. By showing that blue hydrogen (which leverages CCS, an Eni focus) is more advanced in scale and cost, it reinforces why Eni is prioritizing CCS and biofuels over a full-scale commitment to green hydrogen at this stage.

(Source: Enverus)

SWOT Analysis, Eni’s Diversified Strategy and Green Hydrogen Positioning

Eni’s pragmatic and diversified energy transition strategy presents a distinct set of strengths and weaknesses in the context of the rapidly evolving low-carbon landscape. Its focus on large-scale engineering projects and established technologies provides financial stability but also exposes it to risks if the market for newer technologies like green hydrogen accelerates faster than its strategic planning anticipates.

• Strengths are rooted in its engineering expertise and strong cash flow, enabling massive investments in capital-intensive projects like CCS.
• Weaknesses emerge from its cautious stance on green hydrogen, potentially ceding early market share and learning advantages to more aggressive competitors.
• Opportunities lie in becoming a dominant player in the European CCS market and using its integrated model to create captive demand for future blue and green hydrogen.
• Threats include the risk of technology “lock-in” with CCS if policy and cost-downs overwhelmingly favor green hydrogen, and competitors securing key supply chains and offtake agreements first.

Forecasts Show Wide Uncertainty in Hydrogen Demand

This chart is a perfect fit for a SWOT analysis. The ‘wide uncertainty’ in demand represents a significant ‘Threat’ or ‘Weakness’ that must be considered in Eni’s strategic positioning regarding green hydrogen, directly addressing the theme of the section.

(Source: ScienceDirect.com)

Table: SWOT Analysis for Eni’s Energy Transition Strategy (2025)

Forward Look, Eni’s Next Move Hinges on CCS Progress and H 2 Cost-Down

Eni’s strategic patience with green hydrogen will be tested in the coming years, with the success of its current infrastructure-led approach hinging on the execution of its flagship CCS project and a market evolution that validates its timing. The key indicator to watch will be any signal of a strategic pivot toward green hydrogen production, likely driven by policy shifts or internal project milestones.

• If Hy Net Progresses: Successful deployment of the £2 billion in supply chain contracts for the Hy Net project will validate Eni’s CCS-led strategy. Watch for key construction milestones and the signing of commercial CO 2 offtake agreements from industrial partners in 2026.
• Watch for a Hydrogen FID: The most significant signal of a strategic shift would be a Final Investment Decision on a large-scale electrolyzer, potentially at the Ravenna hub or linked to its biorefineries. The absence of such a decision in 2026 would reaffirm its current, more cautious path.
• Monitor LNG and Fusion: A positive FID on the $50 billion Argentina LNG project with YPF would further entrench natural gas in Eni’s long-term strategy. Conversely, any accelerated timelines from Commonwealth Fusion Systems could begin to influence long-range capital planning away from other transition technologies.

Green Hydrogen Market to Exceed $230B by 2035

This forecast of a massive future market for green hydrogen provides the context for the ‘Forward Look’ section. It explains the significant financial incentive for Eni to monitor hydrogen cost-down and progress, as the company’s ‘next move’ could unlock a substantial new revenue stream.

(Source: Precedence Research)

The questions your competitors are already asking

This report covers one angle of Eni’s pragmatic diversification strategy across low-carbon energy markets. The questions that matter most depend on your work.

• Which oil and gas majors are gaining or losing ground in the European hydrogen economy?
• What is the outlook for large-scale green hydrogen deployment in Italy by 2030, given Eni’s focus on CCS and biofuels?
• Eni’s activities in CCS. Is the £2 billion HyNet North West project progressing from supply chain management to construction?
• What is actually happening with Eni’s Ravenna energy hub? Is it progressing as a green hydrogen project or a broader decarbonization hub?

This report does not answer these. Enki Brief Pro does.

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