GIP’s $1.2B Stake Signals a New Era for Carbon Capture

A $1.2B stake sale to GIP highlights booming private bets on Europe’s carbon capture future

3 Nov 2025

Europe’s march toward net-zero just picked up speed. In August 2025, a major energy group agreed to sell nearly half of its carbon capture business to Global Infrastructure Partners, an investment firm backed by BlackRock. The $1.2 billion deal, still awaiting regulatory approval, signals a turning point in how Europe funds its clean energy ambitions.

The company’s projects stretch across the United Kingdom, the Netherlands, and Italy, including key hubs like HyNet and Bacton in the UK, L10 in the North Sea, and Ravenna in Italy. These sites form the backbone of Europe’s strategy to trap and store carbon from heavy industry. By drawing in private money but keeping operational control, the energy group is using outside capital to push development faster. For GIP, it’s a smart entry into one of Europe’s most promising low-carbon sectors.

For years, carbon capture relied heavily on government backing. That is starting to change. Private investors are moving in, treating the technology less as an environmental obligation and more as a business opportunity. The International Energy Agency says Europe must multiply its carbon storage capacity severalfold by 2030 to stay on track for its climate goals, underscoring the scale of the challenge and the potential reward.

Executives describe the tie-up as a blend of expertise and capital. Eni CEO Claudio Descalzi said the sale “unlocks value while accelerating solutions vital to Europe’s decarbonization.” GIP Chairman Bayo Ogunlesi called it “a shared commitment to building the infrastructure of the future.”

Regulatory hurdles and long-term costs still loom, but optimism dominates the industry mood. Analysts say this model could inspire a wave of similar deals, turning carbon capture from a niche pursuit into a mainstream investment class. If so, Europe’s energy transition may depend as much on financial innovation as on engineering prowess.