Eni (ENI.MI) has begun the environmental approval process to transform its industrial site in Priolo, Sicily, into a biorefinery and chemical recycling plant for plastics, the Italian energy group announced on Thursday. The project will repurpose the area currently occupied by Eni’s ethylene plant, which is set to be gradually decommissioned, following recent clearance from Italy’s energy ministry.
The initiative is part of Eni’s strategy to overhaul its chemical business, reducing reliance on traditional petrochemical activities that face challenges in Europe due to high production costs and ageing infrastructure. In line with this plan, the state-controlled group pledged €2 billion ($2.3 billion) over five years to revitalize its loss-making chemical business, Versalis, by diversifying into biofuels, plastic recycling, and specialty chemicals.
The new biorefinery will have an annual production capacity of 500,000 metric tons of fuel derived from vegetable and animal waste, including diesel for transport and SAF-biojet fuel for aviation.
Once operational, the Priolo site will become Sicily’s second biorefinery, joining the Gela facility, which has been in operation since 2019. The project is expected to be completed by the end of 2028.