By Francesca Landini

MILAN (Reuters) -U.S. asset manager BlackRock’s infrastructure fund GIP has agreed to buy a 49.99% stake in Eni’s carbon capture and storage business (CCUS), the Italian company said on Monday without disclosing the value of the deal.

The proposed deal is part of Eni’s broader strategy to sell minority stakes in satellite operations to fund their growth.

Eni CCUS Holding comprises the HyNet and Bacton projects in Britain and L10 in the Netherlands. It also has future rights to acquire Italy’s carbon capture project in Ravenna, which Eni has launched together with Italian gas grid company Snam.

“The decision to consolidate our CCUS global portfolio into a dedicated entity, and the entry of GIP as a strategic partner, will further enhance our ability to deliver large-scale, technically advanced decarbonisation solutions,” Eni Chief Executive Claudio Descalzi said in a statement.

Under the partnership announced on Monday, GIP and Eni will share investment costs to develop the business.

“GIP’s experience in midstream infrastructure, combined with Eni’s technical, operational and industrial capabilities, will help accelerate the deployment of CCUS solutions at meaningful scale,” said GIP Chairman and CEO Bayo Ogunlesi.

CCUS technology removes CO2 produced by industrial processes from the atmosphere or captures it at the point of emission and stores it underground.

The International Energy Agency says the technology can play a vital role in achieving global climate goals. But critics have questioned its commercial viability and warned that it could prolong the use of fossil fuels.

(Reporting by Francesca LandiniEditing by David Goodman)