Eni and Kuwait Petroleum Corporation advance Priolo biorefinery project to accelerate sustainable fuel production in Italy

Eni and Kuwait Petroleum Corporation advance Priolo biorefinery project to accelerate sustainable fuel production in Italy

(IN BRIEF) Eni and Q8 Italy have approved a major joint investment to build a new 500,000-tonne-per-year biorefinery in Priolo, Sicily, using Eni’s Ecofining™ technology to produce HVO and Sustainable Aviation Fuel with at least 65% lower emissions than fossil fuels. The project advances the transformation of the former Versalis site, strengthens a 30-year partnership between the two companies, and supports Eni’s goal of reaching 5 million tonnes of biorefining capacity by 2030, with completion targeted for the end of 2028.

(PRESS RELEASE) MILAN, 3-Feb-2026 — /EuropaWire/ — Eni and Q8 Italy have confirmed a significant strategic investment in the construction of a new biorefinery in Priolo, Sicily, advancing a major transformation of the existing Versalis industrial site. The project has received formal approval from the Boards of Directors of Eni and Kuwait Petroleum Corporation following Q8’s binding offer, marking an important milestone in the long-standing collaboration between the two companies.

The joint initiative builds on more than three decades of partnership between Eni and Q8 Italy, which began in 1996 with their cooperation at the Milazzo refinery. By combining their respective industrial experience and technical capabilities, the two partners aim to establish a state-of-the-art biorefinery that will play a key role in Italy’s energy transition and the broader European decarbonisation agenda.

The facility will be based on Eni’s proprietary Ecofining™ technology, a process that enables the conversion of waste, residues, and vegetable oils into advanced biofuels that can be used either as blends or in pure form. This technology underpins the project’s objective of producing lower-carbon alternatives to conventional fossil fuels while maintaining high performance and operational reliability.

With a planned annual capacity of 500,000 tonnes, the Priolo biorefinery will be designed to offer extensive flexibility in production. It will be capable of manufacturing Hydrotreated Vegetable Oil (HVO) for road and marine transport as well as Sustainable Aviation Fuel (SAF-Biojet) for the aviation sector, allowing Eni and Q8 to respond dynamically to evolving market demand. The biofuels produced are expected to deliver a reduction of at least 65% in greenhouse gas emissions compared with the reference fossil fuel mix, in line with European Union climate objectives.

The project has already completed its engineering phase. Preparatory work for procurement and construction is now underway, with initial demolition activities at the site set to begin shortly. At the same time, the necessary permitting and authorisation procedures have been formally initiated with the relevant authorities.

Final completion of all authorisations, contractual arrangements, and construction works is anticipated by the end of 2028, after which the biorefinery is expected to enter full industrial operation.

The transformation of the Priolo site forms part of a broader strategic plan announced by Eni in October 2024 and reinforced by an agreement signed in March 2025 with the Italian Ministry of Enterprises and Made in Italy. This plan envisions the conversion of the former petrochemical complex into a sustainable industrial hub, supporting Eni’s and Enilive’s objective of reaching a biorefining capacity of 5 million tonnes per year by 2030.

Giuseppe Ricci, Eni’s Chief Operating Officer for Industrial Transformation, stated that the Priolo project demonstrates the robustness of Eni’s long-term vision to replace unprofitable basic chemicals with competitive, sustainable activities that contribute to the decarbonisation of transport. He emphasised that the transformation will enhance environmental performance while preserving employment and local industrial skills.

Shafi Taleb Al Ajmi, Chief Executive Officer of Kuwait Petroleum International, highlighted that the investment aligns with Kuwait Petroleum Corporation’s 2050 Energy Transition Strategy. He noted that the Priolo biorefinery represents Kuwait’s second major joint project with Eni in Sicily and reflects a shared commitment to innovation, strategic partnership, and sustainable mobility solutions across the European market.

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SOURCE: Eni S.p.A.