KEY POINTS
- Eni seeks approval for Sicily biorefinery and recycling plant.
- The €2 billion investment targets cleaner fuel production.
- Project aligns with Eni’s plan to overhaul its chemical division.
Italian energy company Eni (ENI.MI) has initiated the environmental approval process to transform its Priolo, Sicily, industrial site.
The project aims to convert the existing facility into a modern biorefinery and a chemical recycling plant for plastic waste.
Eni seeks approval for Sicily biorefinery
Italy’s energy ministry has cleared Eni’s application to move forward with the project, which will occupy the same area currently used by the company’s ethylene plant. That facility is set to be gradually decommissioned in the coming years. By transforming the site, Eni intends to align its operations with a cleaner, more sustainable model of industrial production.
The development forms part of Eni’s five-year plan to inject €2 billion ($2.3 billion) into its chemical subsidiary Versalis, which has struggled with losses over rising production costs and ageing infrastructure across Europe. Through this investment, Eni aims to diversify into biofuels, plastic recycling, and speciality chemicals to strengthen its competitive position.
Recycling technology supports circular economy
The new biorefinery in Priolo is expected to produce up to 500,000 metric tons of fuel per year, using vegetable and animal waste as feedstock, according to Reuters. The output will include renewable diesel for transport and SAF-biojet fuel for aviation, supporting Europe’s push toward cleaner transportation. When completed, it will become Sicily’s second biorefinery, following the Gela plant that has been operational since 2019.
Alongside the refinery, Eni will build a chemical recycling facility featuring a proprietary technology known as Hoop. This process converts mixed plastic waste into a reusable feedstock suitable for manufacturing new materials, including food-grade and pharmaceutical packaging. The Priolo plant will be the first full-scale industrial facility to apply the Hoop system, following the successful pilot project launched in Mantua in June.
Completion of the Priolo project is expected by the end of 2028, highlighting Eni’s commitment to advancing a low-carbon future while rejuvenating its industrial footprint in southern Italy.
