Eni, the Italian biorefinery company, has teamed up with Q8 in Sicily to build a biorefinery.

The two companies announced on Tuesday that they had agreed to "jointly" build and operate a biorefinery at Priolo in Sicily. This is a "major" step in the conversion of former chemical facilities.

Eni is reorganizing its?chemical division, which has been losing money. The European petrochemical industry is struggling with "overcapacity".

Eni shut down its steam cracker in Priolo last year and plans to move part of its staff to a new biorefinery?and possibly a new mixed plastic recycling?plant.

The investment in the 'biorefinery' follows an offer made by Q8 that was accepted both by Eni, and Kuwait Petroleum Corporation (parent company of Q8).

The Priolo plant converts?wastes, residues and vegetable oils into advanced fuels. The plant will be able?to process 500,000 tonnes per year and produce sustainable aviation fuel as well.

According to the companies, this plant will reduce greenhouse gas emissions from fossil fuels by at least 65%.

The engineering work on the project is complete, and the finalisation of the contracts and approvals are expected to be completed by the end 2028. (Reporting and editing by Bernadette baum; Francesca Landini)

(source: Reuters)