MILAN, Feb 3 (Reuters) – Italian energy group Eni and Q8 Italy have agreed to jointly build and operate a new biorefinery at Priolo, in Sicily, a major step in the conversion of the site’s former chemical facilities, the two companies said on Tuesday.
The move is part of Eni’s strategy to overhaul its loss-making chemical business as the European petrochemical sector struggles with overcapacity.
Eni closed its Priolo steam cracker last year and plans to shift part of its workforce to the new biorefinery and a possible new mixed plastic recycle plant.
Investment in the biorefinery follows a binding offer from Q8 and approval from the boards of both Eni and Kuwait Petroleum Corporation, the parent of Q8.
The Priolo plant will convert waste, residue and vegetable oils into advanced biofuels. It will be able to process 500,000 tonnes a year and produce sustainable aviation fuel as well.
The plant’s output will cut greenhouse gas emissions by at least 65% compared with fossil fuels, the companies said, in line with EU rules.
Engineering work on the project has been finished, with completion of approvals and finalisation of contracts expected by the end of 2028.
(Reporting by Francesca Landini; Editing by Bernadette Baum)
