Italian oil and gas company Eni and Kuwait Petroleum Corporation’s (KPC) Q8 Italy business have announced plans to construct a biorefinery in Priolo, Sicily.
This initiative is part of a transformation plan for the Versalis site in Priolo. It has received approval from the Boards of Directors of both Eni and KPC following Q8’s submission of an official binding offer.
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The biorefinery project strengthens the partnership between Eni and Q8, which began with the Milazzo refinery in 1996. It aims to establish a joint industrial operation at the site.
Kuwait Petroleum International CEO Shafi Taleb Al Ajmi said: “This project reflects KPC’s commitment to advancing towards our 2050 Energy Transition Strategy. The investment marks our second megaproject with Eni in Sicily.
“It demonstrates the shared commitment of Q8 and Eni to excellence, innovation, and strategic partnership, as well as our ongoing presence and confidence in the Italian energy sector.”
The new Priolo facility will utilise Eni’s Ecofining technology, enabling the conversion of waste, residues and vegetable oils into biofuels.
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By GlobalDataThe plant will have an annual capacity of 500,000t and produce hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF-Biojet).
This production is aligned with EU objectives to reduce greenhouse gas emissions by at least 65% compared to conventional fossil fuels.
The engineering phase of the project has been completed, and preparatory steps for procurement and construction are under way, including necessary demolition works.
The authorisation process has begun, with details due to be finalised by late 2028.
The transformation of the Priolo site was initially announced by Eni in October 2024, with further confirmation through an agreement signed in March 2025 at the Ministry of Enterprises and Made in Italy.
This initiative aims to convert the existing industrial site into a long-term sustainable operation, contributing to Eni and Enilive’s goal of achieving a biorefining capacity of five million tonnes per annum by 2030.
Eni industrial transformation chief operating officer Giuseppe Ricci said: “The transformation plan of the Priolo industrial site proves to be solid and sustainable and demonstrates the validity of the long-term vision that involves the conversion of loss-making basic chemical business into new competitive and more sustainable activities, which can contribute to the decarbonisation of transport.”
Last September, Eni won approval from Italy’s Ministry of the Environment and Energy Security to convert certain units at its Sannazzaro de’ Burgondi (Pavia) refinery into a biorefinery.
The plan includes upgrading the existing hydrocracker unit with Ecofining technology and building a pre-treatment facility for waste and residue streams, the primary biogenic feedstocks Enilive uses to produce HVO biofuels.
