Eni and Q8 Back €500,000-Tonne Biorefinery Project in Sicily
Italy’s energy major Eni and Q8 Italy, part of Kuwait Petroleum Corporation (KPC), have formally approved a strategic joint investment to construct and operate a new biorefinery at the Priolo industrial site in Sicily. The decision follows a binding offer from Q8 and final approvals from the boards of both Eni and KPC, cementing one of the most significant biofuels investments in Southern Europe.
The project will convert the existing Versalis industrial site into a biorefinery with a nameplate capacity of 500,000 tonnes per year. The facility will produce Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF-Biojet), targeting road, marine, and aviation transport markets.
According to Eni, the plant will be able to reduce greenhouse gas emissions by at least 65% compared with the fossil fuel reference mix, in line with EU decarbonization targets.
The Priolo biorefinery will leverage Eni’s proprietary Ecofining™ technology, which allows the conversion of waste feedstocks, residues, and vegetable oils into advanced biofuels that can also be used in 100% pure form. The design offers operational flexibility, enabling output to shift between HVO and SAF depending on market demand.
Engineering for the project has already been completed. Preparatory work for procurement and construction contracts is underway, demolition activities are about to begin, and the permitting process has been formally launched. Subject to regulatory approvals and final contractual arrangements, the project is expected to be completed by the end of 2028.
The investment deepens a three-decade partnership between Eni and Q8, which began with the Milazzo refinery in 1996. It also represents Q8’s second major industrial project with Eni in Sicily, underscoring Kuwait Petroleum Corporation’s continued commitment to the Italian energy market.
For Eni, the Priolo project is part of a broader strategy to repurpose legacy, loss-making chemical assets into competitive low-carbon businesses. The transformation plan was first announced in October 2024 and later formalized through an agreement signed in March 2025 at Italy’s Ministry of Enterprises and Made in Italy.
The biorefinery is also aligned with Enilive’s growth targets, which call for total biorefining capacity of 5 million tonnes per year by 2030 as Eni accelerates its pivot toward low-carbon fuels and sustainable mobility.
Europe’s biofuels sector has been gaining momentum as governments push to decarbonize transport, particularly aviation, where SAF demand is expected to grow rapidly under EU mandates. Large-scale projects like Priolo position Italy as a key hub for advanced biofuels production in the Mediterranean, with potential spillover benefits for supply chains and employment.
Eni has emphasized that the Priolo conversion will preserve jobs and industrial know-how while ensuring the long-term viability of the site. For Q8 and KPC, the project supports portfolio diversification and advances their 2050 energy transition strategy, with a focus on sustainable mobility solutions for European customers.
By Charles Kennedy for Oilprice.com
Italy’s energy major Eni and Q8 Italy, part of Kuwait Petroleum Corporation (KPC), have formally approved a strategic joint investment to construct and operate a new biorefinery at the Priolo industrial site in Sicily. The decision follows a binding offer from Q8 and final approvals from the boards of both Eni and KPC, cementing one of the most significant biofuels investments in Southern Europe.
The project will convert the existing Versalis industrial site into a biorefinery with a nameplate capacity of 500,000 tonnes per year. The facility will produce Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF-Biojet), targeting road, marine, and aviation transport markets.
According to Eni, the plant will be able to reduce greenhouse gas emissions by at least 65% compared with the fossil fuel reference mix, in line with EU decarbonization targets.
The Priolo biorefinery will leverage Eni’s proprietary Ecofining™ technology, which allows the conversion of waste feedstocks, residues, and vegetable oils into advanced biofuels that can also be used in 100% pure form. The design offers operational flexibility, enabling output to shift between HVO and SAF depending on market demand.
Engineering for the project has already been completed. Preparatory work for procurement and construction contracts is underway, demolition activities are about to begin, and the permitting process has been formally launched. Subject to regulatory approvals and final contractual arrangements, the project is expected to be completed by the end of 2028.
The investment deepens a three-decade partnership between Eni and Q8, which began with the Milazzo refinery in 1996. It also represents Q8’s second major industrial project with Eni in Sicily, underscoring Kuwait Petroleum Corporation’s continued commitment to the Italian energy market.
For Eni, the Priolo project is part of a broader strategy to repurpose legacy, loss-making chemical assets into competitive low-carbon businesses. The transformation plan was first announced in October 2024 and later formalized through an agreement signed in March 2025 at Italy’s Ministry of Enterprises and Made in Italy.
The biorefinery is also aligned with Enilive’s growth targets, which call for total biorefining capacity of 5 million tonnes per year by 2030 as Eni accelerates its pivot toward low-carbon fuels and sustainable mobility.
Europe’s biofuels sector has been gaining momentum as governments push to decarbonize transport, particularly aviation, where SAF demand is expected to grow rapidly under EU mandates. Large-scale projects like Priolo position Italy as a key hub for advanced biofuels production in the Mediterranean, with potential spillover benefits for supply chains and employment.
Eni has emphasized that the Priolo conversion will preserve jobs and industrial know-how while ensuring the long-term viability of the site. For Q8 and KPC, the project supports portfolio diversification and advances their 2050 energy transition strategy, with a focus on sustainable mobility solutions for European customers.
By Charles Kennedy for Oilprice.com
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