Eni and Q8 Support €500,000-Tonne Biorefinery Initiative in Sicily

Eni and Q8 Greenlight Major Biorefinery Project in Sicily

Eni, a leading Italian energy company, together with Q8 Italy—a subsidiary of Kuwait Petroleum Corporation (KPC)—have officially agreed to jointly invest in the development and management of a new biorefinery at the Priolo industrial complex in Sicily. This move follows a binding proposal from Q8 and final board approvals from both Eni and KPC, marking one of the largest biofuel investments in Southern Europe to date.

Transforming the Versalis Site for Sustainable Fuel Production

The initiative involves converting the current Versalis facility into a biorefinery capable of processing up to 500,000 tonnes annually. The plant will manufacture Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF-Biojet), catering to the needs of road, maritime, and aviation sectors.

Eni reports that the new facility will be able to cut greenhouse gas emissions by at least 65% compared to traditional fossil fuel blends, supporting the European Union’s decarbonization objectives.

Advanced Technology and Flexible Operations

The Priolo biorefinery will utilize Eni’s proprietary Ecofining™ process, which enables the transformation of waste materials, residues, and vegetable oils into advanced biofuels suitable for use in their purest form. The plant’s design allows for operational flexibility, making it possible to adjust production between HVO and SAF based on market requirements.

Project Timeline and Progress

Engineering work for the biorefinery has been finalized. Preparations for procurement and construction contracts are ongoing, demolition is set to commence, and the permitting process has started. Pending regulatory clearance and completion of final contracts, the facility is expected to be operational by the end of 2028.

Strengthening Longstanding Partnerships

This investment builds on a partnership between Eni and Q8 that spans over thirty years, beginning with the Milazzo refinery in 1996. It also marks Q8’s second major industrial venture with Eni in Sicily, highlighting KPC’s ongoing commitment to the Italian energy sector.

Strategic Shift Toward Low-Carbon Solutions

For Eni, the Priolo project is part of a broader initiative to transform underperforming chemical assets into competitive, low-carbon businesses. The plan was first unveiled in October 2024 and formalized through an agreement signed in March 2025 at Italy’s Ministry of Enterprises and Made in Italy.

The biorefinery also supports Enilive’s expansion goals, aiming for a total biorefining capacity of 5 million tonnes per year by 2030 as Eni accelerates its transition to sustainable fuels and cleaner mobility solutions.

Positioning Italy as a Biofuels Leader

With European governments intensifying efforts to decarbonize transportation—especially aviation, where demand for SAF is set to rise rapidly under EU regulations—large-scale projects like Priolo are positioning Italy as a central hub for advanced biofuel production in the Mediterranean. These developments are expected to benefit local supply chains and create new job opportunities.

Ensuring Jobs and Supporting Energy Transition

Eni has highlighted that the Priolo conversion will safeguard local employment and maintain industrial expertise, ensuring the site’s long-term sustainability. For Q8 and KPC, the project aligns with their strategy to diversify their portfolio and advance their 2050 energy transition plan, with a focus on sustainable mobility for European markets.

By Charles Kennedy for Oilprice.com