Eni's Carbon Capture Play: How Strategic Partnerships Are Fueling a Green Energy Revolution

The race to decarbonize global energy systems is intensifying, and Eni (NYSE: ENI) is positioning itself at the forefront with a bold strategy: leveraging strategic partnerships and stake sales to accelerate the deployment of carbon capture, utilization, and storage (CCUS) technologies. By aligning with industry leaders like ADNOC and mobilizing capital through smart stake management, Eni is not only reducing emissions but also unlocking new streams of shareholder value. Here's why investors should pay close attention.

The Power of Partnerships: ADNOC and Beyond

Eni's partnership with Abu Dhabi National Oil Company (ADNOC) stands out as a blueprint for how oil majors can pivot toward sustainability while maintaining hydrocarbon production. Under their 2023 Memorandum of Understanding, the two companies are scaling ADNOC's Al Reyadah CCUS facility—a pioneering project in the Middle East—to capture 5 million tonnes of CO₂ annually by 2030, up from 800,000 tonnes today. This expansion leverages ADNOC's expertise in subsurface geology and Eni's advanced reservoir analysis tools, enabling efficient carbon storage and enhanced oil recovery (EOR).

But the collaboration goes deeper. The partnership integrates geomechanical and geochemical workflows to optimize CCUS efficiency, while aligning with ADNOC's goal to reduce greenhouse gas intensity by 25% by 2030 and Eni's net-zero target for upstream operations by the same year. This synergy isn't just about carbon reduction—it's about proving that fossil fuel production and decarbonization can coexist profitably.

Stake Sales: A Masterclass in Capital Mobilization

Eni isn't just partnering; it's redefining how energy companies fund green transitions. Take its Enilive unit, which focuses on biorefining and smart mobility. Eni is in advanced talks to sell a 20–25% stake in Enilive to KKR, valuing the unit at $12.5–13.6 billion. This move exemplifies Eni's “satellite strategy”—spinning off growth assets to attract external capital while retaining operational control. The deal could also include an option to sell an additional 10% stake, further de-risking investments in low-carbon projects.

Similarly, Energy Infrastructure Partners (EIP) recently increased its stake in Eni's Plenitude unit—a hub for renewables and EV charging—to 10% via a €209 million injection. This brings EIP's total investment to €800 million, valuing Plenitude at a post-money equity value of €8 billion. These transactions underscore a critical point: the market is willing to pay premium multiples for scalable decarbonization assets.

Eni's forward-looking strategy has outperformed peers, gaining 20% since 2021.

Why CCUS Is the New Oil

The scalability of CCUS is no longer theoretical. The International Energy Agency (IEA) estimates that CCUS must capture 2.6 gigatonnes of CO₂ annually by 2030 to meet global climate goals—a figure Eni and ADNOC's partnership alone could contribute meaningfully to. But the value creation isn't limited to emissions reduction.

• Regulatory Tailwinds: Governments worldwide are fast-tracking incentives for CCUS. The U.S. Inflation Reduction Act offers $180/ton tax credits for captured CO₂, while the EU's Carbon Border Adjustment Mechanism (CBAM) penalizes carbon-intensive imports. These policies turn CCUS projects into cash machines.
• EOR Synergies: Eni's Bab field project in partnership with ADNOC combines CCUS with enhanced oil recovery, boosting oil production while sequestering CO₂. This dual benefit ensures profitability even as the world transitions to cleaner energy.
• Scalability: With a $15 billion clean energy investment pledge by ADNOC and Eni's global concessions (e.g., 25% in ADNOC's Ghasha gas project), the companies can replicate proven CCUS models across geographies.

Risks and Realities

Critics argue that CCUS is too costly or a “license to pollute.” But Eni's partnerships address both concerns:
1. Cost Reduction: Economies of scale from projects like ADNOC's 5-million-tonne facility will lower per-ton capture costs.
2. Ethical Alignment: Eni's net-zero targets and methane reduction goals (0.15% intensity by 2025) ensure CCUS isn't a crutch but a bridge to a sustainable future.

Investment Thesis: Buy the Transition, Not the Decline

Eni isn't a relic of the fossil fuel era—it's a future-focused energy giant using partnerships to monetize decarbonization. Key catalysts for investors include:
- Finalizing the Enilive stake sale by end-2025, unlocking $10–13.6 billion in capital.
- Scaling ADNOC's CCUS projects, which could become a blueprint for Middle Eastern energy majors.
- Regulatory wins, such as EU or U.S. policy breakthroughs, which could supercharge CCUS valuations.

Eni's 2030 targets could account for 5–7% of global CCUS capacity, up from less than 1% today.

Final Take: Eni's Green Pivot Is Paying Off—Now Is the Time to Act

Eni's strategy is clear: use partnerships to de-risk decarbonization and stake sales to fuel growth. With CCUS demand set to explode and oil majors scrambling to adapt, Eni is already ahead of the curve. For investors seeking exposure to the energy transition without abandoning yield, Eni offers a rare blend of growth, scalability, and regulatory tailwinds.

The energy transition isn't a distant future—it's here. Eni's moves today will define its value tomorrow. Act now.

Investor Action: Consider adding Eni to your portfolio ahead of its Q2 2025 earnings, where stake sale updates and CCUS progress could trigger a valuation re-rating.