KKR doubles down on Enilive with €587.5m—What’s behind the move?

KKR, a leading global investment firm, has strengthened its presence in Enilive by acquiring an additional 5% stake from Eni for €587.5 million. This latest transaction increases KKR’s total holding in Enilive to 30%, underscoring its commitment to energy transition investments and sustainable mobility solutions. The deal follows an earlier agreement signed in October 2024, in which KKR secured an initial 25% stake in Enilive. The transaction, which maintains Enilive’s valuation at €11.75 billion, aligns with Eni’s strategy to optimize its capital structure while retaining full control over its subsidiary.

Why Is KKR Increasing Its Stake In Enilive?

KKR’s growing investment in Enilive reflects its confidence in the company’s role in the energy sector’s transition toward low-carbon energy solutions. Enilive is a crucial component of Eni’s mobility transformation strategy, focusing on biorefining, biomethane production, and innovative smart mobility services. The company operates more than 5,000 Enilive stations across Europe, delivering sustainable mobility solutions that support Eni’s decarbonization efforts.

Marco Fontana, Managing Director of KKR’s European Infrastructure team, highlighted that this additional investment aligns with KKR’s broader vision of supporting transformative energy projects across Europe. He emphasized that Enilive’s expertise in low-emission energy solutions positions it as a key player in the transition to cleaner, more sustainable fuel sources.

How Does This Investment Support Enilive’s Energy Transition Goals?

Enilive plays a pivotal role in Eni’s ambition to achieve carbon neutrality by 2050. The company is actively expanding its biorefining capacity and enhancing its capabilities in sustainable aviation fuel production, aiming to exceed 5 million tonnes per year in biorefining output and up to 2 million tonnes in SAF production by 2030. Enilive’s strategic assets include the Venice and Gela biorefineries in Italy, which are central to Eni’s energy transition investments. It also operates the St. Bernard Renewables joint venture in Louisiana, United States, in partnership with PBF Energy. In Italy, several biogas plants are being converted to biomethane production, while new biorefinery projects are under development in Livorno, Malaysia, and South Korea.

By securing KKR’s increased financial backing, Enilive gains additional resources to accelerate its low-carbon energy solutions and expand its footprint in sustainable mobility solutions. The investment enhances Enilive’s ability to develop cleaner fuel alternatives and contribute to reducing carbon emissions in the transportation sector.

What Does This Mean for Eni’s Long-Term Strategy?

Eni’s decision to bring in a strong financial partner like KKR is part of a broader strategy to enhance the market visibility of its energy transition businesses while maintaining operational control. Francesco Gattei, Chief Transition & Financial Officer at Eni, noted that KKR’s additional investment reinforces Enilive’s attractiveness to investors and confirms the market’s confidence in its growth trajectory. He emphasized that Enilive will continue to play a critical role in Eni’s efforts to reduce emissions from its fuel products, a key aspect of its journey toward net-zero emissions.

This transaction also supports Eni’s satellite strategy, which involves attracting external capital to specific business segments to foster their independent expansion. By maintaining majority control, Eni ensures that Enilive remains aligned with its overall sustainability and energy transition investments strategy. The involvement of a major global investment firm such as KKR validates Eni’s approach of unlocking value in its subsidiaries while retaining strategic oversight.

How Does KKR’s Investment Align With Its Broader Portfolio?

KKR’s growing stake in Enilive is part of its long-term commitment to investing in infrastructure and sustainable mobility solutions. Since 2005, KKR has been actively investing in Italy across multiple sectors. In July 2024, the firm completed the acquisition of Telecom Italia’s fixed-line network, incorporating it into FiberCop to establish Italy’s largest broadband network. The firm’s interest in Italy spans various infrastructure and energy-related projects, positioning it as a key player in the country’s economic and industrial transformation.

The investment in Enilive is being made through KKR’s Global Infrastructure Strategy, a platform it launched in 2008 to focus on large-scale infrastructure investments. Currently, KKR manages over $77 billion in infrastructure assets, demonstrating its influence in financing low-carbon energy solutions worldwide.

The firm’s decision to increase its stake in Enilive aligns with its objective of supporting companies that provide essential services in the energy transition. The involvement of leading international co-investors, including major pension funds, further demonstrates strong market recognition of Enilive’s potential in sustainable mobility solutions. With growing demand for cleaner energy sources, KKR sees long-term value in Enilive’s ability to expand its market position in decarbonized fuel production and distribution.

What Are the Next Steps for the Transaction?

The completion of KKR’s acquisition of the additional 5% stake in Enilive remains subject to regulatory approvals. Once finalized, the deal is expected to reinforce Enilive’s standing as a leader in energy transition investments, enabling the company to scale its operations and further solidify its role in delivering low-carbon energy solutions.

Industry analysts view KKR’s increasing stake as a clear sign that institutional investors recognize the value of Enilive’s sustainable mobility solutions and its contributions to the broader decarbonization movement. As Enilive continues to expand its capabilities in biorefining, biomethane, and sustainable aviation fuel production, it is likely to attract additional financial and strategic partners looking to support the global shift toward cleaner energy.

Eni remains committed to enhancing Enilive’s market value while ensuring that it remains a central part of its transition to a low-carbon energy future. With KKR’s growing involvement, Enilive is well-positioned to accelerate its sustainability initiatives and play a crucial role in the evolving energy landscape.