BlackRock, the world’s largest asset manager, recently made headlines by using its Global Infrastructure Partners (GIP) division to strike a deal with Italy’s energy giant Eni. Through this transaction, GIP agreed to acquire a 49.99% stake in Eni’s carbon capture, utilization, and storage (CCUS) business. The unit—called Eni CCUS Holding—is valued at around €1 billion, or roughly $1.2 billion.
The deal reflects growing global interest in climate technologies. It also shows how asset managers and oil majors are working together to scale next-generation clean energy solutions.
Carbon capture is increasingly seen as a critical part of reducing emissions from hard-to-abate industries such as cement, steel, and refining.
How Carbon Capture Works—and Why the World’s Betting on It
Carbon capture, utilization, and storage—known as CCUS or CCS—is a process that reduces carbon dioxide (CO₂) emissions from power plants, factories, and even directly from the atmosphere.
First, the CO₂ is captured at its source before it escapes into the air. Then, it is either transported and stored underground in rock formations or reused in other products like fuels, concrete, or chemicals. Sites used for storage include depleted oil and gas reservoirs or deep saline aquifers.
Globally, CCUS is gaining traction. According to the International Energy Agency, there are now over 40 commercial projects either operating or under development. By 2030, carbon capture facilities could remove more than 1 billion tonnes of CO₂ per year—up from about 50 million tonnes today.

Eni’s portfolio is part of this growing movement. The company’s CCUS assets include:
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Hynet North West and Bacton Thames NetZero projects in the UK.
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L10CCS in the Netherlands
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The large-scale Ravenna site in Italy
Ravenna is Italy’s first CO₂ capture and storage project, which aims to scale from 25,000 tonnes annually to become a major carbon storage hub for Southern Europe by 2030. The company has the following CCS goals:

Together, the projects could capture and store up to 29 million tonnes of CO₂ per year by 2030—roughly equal to taking 6 million gas-powered cars off the road annually.
Why the World’s Largest Asset Manager Went All-In on CCUS
BlackRock’s investment in Eni’s carbon business came just months after it acquired GIP for $12.5 billion. GIP brought in about $100 billion in infrastructure assets covering energy, transport, and utilities. Now part of BlackRock, GIP is being positioned as a key player in building clean energy and decarbonization projects.
By buying into Eni’s CCUS unit, BlackRock signals its belief that carbon capture will play a major role in meeting global net-zero targets. It also shows that carbon management is no longer just a policy tool—it’s becoming a commercial opportunity for investors.
The deal gives BlackRock access to long-term, inflation-protected revenue linked to decarbonization goals. For Eni, the partnership brings in capital to expand its CCUS business faster while keeping control of day-to-day operations.
Eni’s Clean Energy Playbook: Spin It Off, Scale It Up
Eni has adopted a satellite business model to accelerate its clean energy transition. This means it creates separate business units for renewables, biofuels, and now CCUS, and brings in outside investors to help fund growth. By doing so, Eni can access capital while spreading the financial risk of entering new markets.
The CCUS spin-off fits into Eni’s broader sustainability plan. The company has committed to achieving net-zero emissions by 2050 across its operations and products.

Eni now manages more than 2 gigawatts of renewable energy via Plenitude. It is also expanding into solar and wind projects in Italy, North Africa, and Spain. It’s also increasing biofuel production using waste oils and agricultural residues.
By spinning off its CCUS unit, Eni can grow these solutions faster without sacrificing its core business in oil and gas.
Carbon Capture Gets Real: What This Deal Signals for the Market
The BlackRock-Eni deal has broad implications for both the energy industry and the carbon removal space.
CCUS Gains Credibility and Investment
Once considered too expensive and uncertain, CCUS is now entering the mainstream. Market forecasts expect the global CCUS industry to grow from $3.2 billion in 2023 to over $18 billion by 2032. In terms of capacity, CCS could reach up to 1,300 Mt per year by 2050.

The U.S. 45Q tax credit pays up to $85 per tonne of CO₂ captured, while the EU’s Innovation Fund provides billions in grants. With policies like these, CCUS projects have the support they need to grow.
Private Capital Joins the Fight
BlackRock’s move marks a shift in climate finance. Institutional investors are now targeting hard-to-abate sectors, not just wind and solar. GIP’s involvement shows that CCUS can offer stable, long-term returns tied to carbon prices or industrial contracts.
Energy Firms Adopt New Funding Models
Eni’s approach offers a model for other oil majors looking to decarbonize. By creating new business units and selling part of them, companies like Shell, TotalEnergies, or Chevron can fund clean energy projects while keeping their core assets intact. This lowers financial risk and attracts ESG-focused investors.
Supply Chain and Technology Development
Large-scale carbon capture projects need more than funding. They need CO₂ pipelines, storage infrastructure, capture equipment, and skilled labor. The BlackRock–Eni deal is expected to help build all of these. It will also support jobs and economic development in regions that depend on heavy industry.
Will This Billion-Euro Bet Spark a CCS Boom?
Several things will shape what comes next for CCS. The deal is expected to close by late summer 2025. After that, Eni and BlackRock will begin developing the CCUS pipeline further.
BlackRock’s billion-euro bet on Eni’s carbon capture business shows that CCUS is no longer a niche solution. It’s a growing part of global climate strategy—and a real investment opportunity.
For Eni, the deal unlocks growth while allowing it to lead in decarbonization. For BlackRock, it opens the door to long-term returns tied to climate impact.
The success of their partnership will depend on policy support, technology performance, and industry momentum. But if all goes well, this deal could inspire a new wave of investment into the infrastructure needed for a net-zero world.
The post BlackRock and Eni’s $1.2 Billion Deal to Push Carbon Capture appeared first on Carbon Credits.
Carbon Footprint
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Carbon Footprint
What is a life cycle assessment, and why does it matter?
Most businesses have a clear picture of what happens inside their own operations. They track energy consumption, manage waste, and monitor the emissions produced on-site. What they often cannot see is everything that happens before a product reaches their facility, and everything that happens after it leaves.
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Carbon Footprint
Texas-Based EnergyX’s Project Lonestar™ Signals a Turning Point for U.S. Lithium Supply
Energy Exploration Technologies, Inc. (EnergyX), led by CEO Teague Egan, has moved the United States closer to building a reliable domestic lithium supply chain. The company recently commissioned its Project Lonestar™ lithium demonstration facility in Texas, marking a key milestone in scaling direct lithium extraction (DLE) technologies.
This development comes at a time when lithium demand is rising sharply due to electric vehicles and energy storage systems. At the same time, the U.S. remains heavily dependent on foreign processing, particularly from China.
- According to the US import data and Lithium import data of the USA, the total value of US lithium imports reached $432.36 million in 2024, a 9% decline from the previous year.
- The total value of US lithium imports (cells & batteries) accounted for $205.29 million in the first 6 months of 2025.

Against this backdrop, EnergyX’s progress offers both technological validation and strategic value.
From Concept to Reality: How Project Lonestar™ Works
Project Lonestar™ is EnergyX’s first major lithium project in the United States and its second globally. The demonstration plant, located in the Smackover region spanning Texas and Arkansas, is now operational and uses industrial-grade systems rather than small pilot equipment.
- The facility produces around 250 metric tons per year of lithium carbonate equivalent (LCE).
While this output is modest compared to global supply, its importance lies in proving that EnergyX’s proprietary GET-Lit™ technology can efficiently extract lithium from brine. The plant processes locally sourced Smackover brine, a resource that has historically been underutilized despite its lithium potential.

Unlike traditional lithium production, which often relies on hard-rock mining or evaporation ponds, DLE technology directly extracts lithium from brine using advanced filtration and chemical processes. This reduces production time and may lower environmental impact.
- More importantly, the Lonestar™ plant can supply 5 to 25 tons of battery-grade lithium samples to customers.
This allows battery manufacturers to test and validate the material before committing to large-scale supply agreements.

Scaling Up: From Demonstration to Commercial Production
The demonstration plant is only the first phase of a much larger plan. EnergyX aims to scale Project Lonestar™ into a full commercial operation capable of producing 50,000 tonnes of LCE annually across two phases.
- The first phase alone targets 12,500 tonnes per year, which would already place it among the more significant lithium producers in the U.S.
- Significantly, the company has invested approximately $30 million in the demonstration facility, supported in part by a $5 million grant from the U.S. Department of Energy.
- For the full-scale project, EnergyX estimates total capital expenditure at around $1.05 billion.
Cost metrics suggest strong economic potential. The company estimates capital costs at roughly $21,000 per tonne of capacity and operating costs near $3,750 per tonne. If these figures hold at scale, the project could compete effectively with global lithium producers, particularly in a market where cost efficiency is becoming increasingly important.
Teague Egan, Founder & CEO of EnergyX, said,
“Bringing the biggest integrated DLE lithium demonstration plant online in the United States is a foundational milestone for EnergyX and for U.S. domestic lithium production in general. This facility not only validates the performance of our technology on an industrial scale under real-world conditions, but also establishes EnergyX as the lowest cost producer in the U.S. Ultimately this benefits all our customers who need large volumes of lithium for EV and ESS applications, as well as any lithium resource owners looking to implement best-in-class DLE technology whom we are happy to license to.”
Breaking the Bottleneck: Why U.S. Refining Matters
One of the biggest challenges facing the U.S. lithium sector is not resource availability but refining capacity. While lithium deposits exist across the country, most battery-grade lithium chemicals are processed overseas.
China dominates this segment, controlling roughly 70 to 75 percent of global lithium chemical conversion capacity. This concentration creates a structural dependency. Even when lithium is mined in the U.S. or allied countries, it is often shipped abroad for processing before returning as battery materials.
Project Lonestar™ directly addresses this gap. By integrating extraction and refining into a single domestic operation, EnergyX is working to build a complete “brine-to-battery” value chain within the United States. This approach could reduce reliance on foreign processing and improve supply chain resilience.
U.S. Senator Ted Cruz highlighted the project’s importance, noting that domestic lithium production supports both energy security and defense readiness, particularly for applications in advanced battery systems.
- CHECK: LIVE LITHIUM PRICES
The Current Landscape: Limited Supply, Big Ambitions
Investment is flowing into regions such as Nevada, North Carolina, and Arkansas. If even a portion of these reserves is converted into production, the U.S. could significantly reduce its reliance on imported lithium.
Active Resources and Future Potential
At present, U.S. lithium production remains relatively small. The only active large-scale operation is the Silver Peak Mine in Nevada, which produces between 5,000 and 10,000 tonnes of LCE annually, depending on market conditions.
However, several projects are in development that could significantly expand capacity. The Thacker Pass project, for example, is expected to produce around 40,000 tonnes per year in its first phase once operational later in the decade.
In addition, brine-based developments in the Smackover region aim to produce tens of thousands of tonnes annually, with long-term plans exceeding 100,000 tonnes across multiple sites.
These projects indicate a shift from a niche domestic industry to a more substantial production base. Still, timelines remain uncertain due to regulatory and financial challenges.

Demand Surge: Batteries Drive the Lithium Boom
The urgency to expand lithium production is driven by rapid growth in battery demand. Electric vehicles, renewable energy storage, and grid modernization are all increasing lithium consumption.
According to S&P Global, U.S. lithium demand is expected to grow at an average rate of 40 percent annually between 2024 and 2029. Canada is projected to see even faster growth, albeit from a smaller base, with demand rising by around 74 percent per year over the same period.
Globally, battery capacity is forecast to approach 4 terawatt-hours by 2030. This expansion highlights lithium’s central role in the clean energy transition. Without sufficient supply, battery production—and by extension, EV adoption—could face constraints.

Why Progress Takes Time
Turning lithium reserves into operational mines and processing facilities is not straightforward. Projects often face long permitting timelines, environmental scrutiny, and legal challenges. Financing can also be difficult, especially in a volatile commodity market.
Local opposition can further complicate development, particularly in areas with high environmental concerns. These factors can delay projects by several years, slowing the pace of expansion.
To address these barriers, the U.S. government is increasing its involvement through funding, policy support, and efforts to streamline permitting. The Department of Energy’s backing of EnergyX reflects a broader strategy to accelerate domestic critical mineral development.
Conclusion: A Strategic Shift in Motion
Project Lonestar™ represents a meaningful step toward reshaping the U.S. lithium landscape. By proving the viability of direct lithium extraction at an industrial scale, EnergyX has laid the groundwork for larger, commercially viable operations.
The project also aligns with national priorities around energy security, supply chain resilience, and clean energy transition. While challenges remain, the combination of technological innovation, government support, and rising demand creates a strong foundation for growth.
As the world moves toward electrification, lithium will remain at the center of the transition. Projects like Lonestar™ show that the United States is beginning to close the gap between resource potential and real-world production—one facility at a time.
The post Texas-Based EnergyX’s Project Lonestar™ Signals a Turning Point for U.S. Lithium Supply appeared first on Carbon Credits.
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