The Strategic Value of Carbon Capture Assets in the Transition to a Low-Carbon Economy

The energy transition is no longer a distant vision but an unfolding reality, reshaping global markets and redefining the value of traditional and emerging assets. At the heart of this transformation lies a critical question: how do institutional investors allocate capital to infrastructure that aligns with net-zero goals while delivering financial returns? The recent partnership between Eni and BlackRock's Global Infrastructure Partners (GIP) offers a compelling case study. By analyzing the Eni-GIP deal—a potential $1 billion investment in carbon capture, utilization, and storage (CCUS) infrastructure—we can discern how institutional investors are capitalizing on the rising value of carbon infrastructure.

A Case Study in Institutional Capital and Carbon Infrastructure

On May 27, 2025, Eni, the Italian energy giant, signed an exclusivity agreement with GIP to sell a 49.99% co-controlling stake in Eni CCUS Holding, a subsidiary operating several large-scale carbon capture projects across Europe. These include the Hynet and Bacton projects in the UK, the L10 project in the Netherlands, and a future right to acquire the Ravenna project in Italy. Collectively, these projects are projected to capture and store up to 19 million tonnes of CO2 annually by 2030—a figure that underscores the scalability of CCUS as a decarbonization tool.

The deal reflects Eni's “satellite model,” a strategic framework to spin off low-carbon businesses while retaining a stake and preserving cash flow from traditional energy operations. For GIP, part of BlackRock's $150 billion infrastructure platform, the investment aligns with its focus on green infrastructure and decarbonization. By acquiring a stake in a mature CCUS portfolio, GIP gains exposure to a sector projected to grow at a compound annual rate of 28.58% between 2025 and 2030, according to market forecasts.

The Growing Market for Carbon Infrastructure

The CCUS market is no longer a niche segment but a cornerstone of the global energy transition. Regulatory frameworks, such as the EU Emissions Trading System (ETS) and the U.S. 45Q tax credit, are creating robust financial incentives for carbon capture. In Europe, stringent carbon pricing (currently €80–€100 per ton) and national decarbonization targets are accelerating CCUS adoption. Meanwhile, in the U.S., the Infrastructure Investment and Jobs Act has allocated $3.5 billion to scale carbon capture projects, further cementing the sector's viability.

The carbon credit market, closely linked to CCUS, is also expanding. High-quality carbon credits from CCUS and direct air capture (DAC) projects are fetching premiums in both compliance and voluntary markets. For instance, the Ravenna project alone could generate €280–€400 million annually in carbon credit revenue at current prices. This monetization potential is a key draw for institutional investors like GIP, which seeks long-term, inflation-protected returns.

Strategic Implications for Investors

The Eni-GIP deal highlights three strategic imperatives for investors:
1. Regulatory Alignment: CCUS projects are increasingly embedded in policy-driven decarbonization pathways. The Hynet project, for example, is part of the UK government's £21.7 billion carbon capture cluster initiative. Investors must prioritize assets aligned with national and regional regulatory frameworks.
2. Scalability and Portfolio Diversification: Eni's CCUS platform is designed to expand, with potential to add projects in other regions. This scalability reduces idiosyncratic risk and enhances long-term value.
3. Capital Efficiency: By leveraging external capital through the satellite model, Eni avoids overcommitting its balance sheet while retaining upside potential. For institutional investors, this structure offers a lower-risk entry into high-growth sectors.

However, challenges remain. CCUS projects require upfront capital expenditures and long payback periods. Technological advancements in capture efficiency and cost reductions will be critical to sustained profitability. Investors must also monitor geopolitical risks, such as shifts in carbon pricing or policy reversals in key markets.

Investment Advice: Positioning for the Low-Carbon Transition

For investors seeking exposure to carbon infrastructure, the Eni-GIP deal underscores the importance of a diversified approach. While direct investments in CCUS projects are capital-intensive, indirect exposure through infrastructure funds or green bonds can offer more accessible entry points. For example, BlackRock's own green infrastructure funds have seen inflows exceeding $50 billion since 2023, reflecting growing demand for ESG-aligned assets.

Moreover, investors should consider the broader energy transition ecosystem. CCUS is not an isolated technology but a component of a larger network that includes hydrogen production, renewable energy integration, and digital infrastructure. A holistic strategy that connects these elements can enhance risk-adjusted returns.

Conclusion

The Eni-GIP partnership is a harbinger of a new era in energy investment. As the world races to meet climate targets, carbon infrastructure will become a linchpin of the low-carbon economy. For institutional investors, the key lies in identifying assets that combine regulatory tailwinds, technological maturity, and scalable growth potential. The CCUS sector, with its dual role in emissions reduction and financial returns, offers a compelling opportunity.

In the coming years, the value of carbon capture will not be measured solely in tonnes of CO2 stored but in its ability to bridge the gap between a fossil-fuel-dependent present and a sustainable future. For investors who recognize this shift, the rewards could be substantial.