Italy’s Eni and Q8 Italy to open biorefinery, turning waste into biofuels in Sicily

Europe’s petrochemical sector is struggling with excess capacity. Italian oil company Eni and fuel distributor and retailer Q8 have found at least a partial solution.

According to Reuters, the petrochemical industry is struggling with excess capacity. A 2026 analysis by ICIS shows that petrochemicals are the hardest-hit segment of Europe’s chemical industry, with announced plant closures equivalent to 14% of production capacity, or around 25 million tonnes of petrochemical products and polymers.

Italian Eni, however, has a new strategy to restructure its loss-making chemicals division. It has agreed with Q8 Italy to jointly build and operate a new biorefinery in Priolo, Sicily. This marks a significant step in the transformation of the former chemical facilities at the site.

After closing its steam cracker in Priolo last year, Eni plans to transfer some of its employees to the new biorefinery and potentially to a new mixed-plastics recycling plant.

The investment in the biorefinery follows a binding offer from Q8 and approval by the boards of Eni and Kuwait Petroleum Corporation, Q8’s parent company.

The plant in Priolo will convert waste, residues and vegetable oils into advanced biofuels. It will have the capacity to process 500,000 tonnes a year and will also produce sustainable aviation fuel.

The plant’s production will reduce greenhouse gas emissions by at least 65% compared with fossil fuels, the companies said, in line with EU rules.

Engineering work on the project has been completed, with approvals and finalisation of contracts expected by the end of 2028.