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Eni and GIP in negotiations for the sale of 49.99% carbon capture unit

Eni announced on Tuesday that it has begun exclusive negotiations to sell a 49.99% share of its Carbon Capture, Utilisation and Storage (CCUS), business to BlackRock Infrastructure Fund GIP.

Eni has a broader strategy that includes developing dedicated units, or satellites, and selling minority stakes to fund growth.

Francesco Gattei, Eni's Chief Transition and Finance Officer, said recently that this allows Eni to grow its low-carbon businesses and still maintain its ability to invest in oil & gas activities.

Eni CCUS Holding comprises the Hynet and Bacton project in Britain, L10 in the Netherlands and future rights to purchase Italy's Carbon Capture Project in Ravenna.

Eni stated that the GIP agreement will allow it to not only purchase a stake in the CCUS project but also to support investment to further develop them.

The Italian group claimed that the agreement was reached after a selection of several bidders.

Sources said in March that GIP and HitecVision had submitted non-binding offers for the business. Also, Macquarie and Italy's Snam, as well as Thailand's PTT Exploration and Production Public Company, were also mentioned.

The CCUS technology captures CO2 at the point of emissions and stores it underground.

International Energy Agency (IEA) says that the technology could play a crucial role in meeting global climate goals. Critics say that it could prolong the use of fossils fuels, and they question its commercial viability. (Reporting and editing by Gavin Jones, Jan Harvey and Francesca Landini)

(source: Reuters)