Europe has seen several exceedingly large energy companies divesting assets in recent years. Eni, an Italian energy major with assets across Europe, has recently launched the all-new Industrial Evolution division to accelerate upgrading efforts for its downstream portfolio in Italy. The company has been a cornerstone of the European energy industry for decades and now plans to expand operations at several Italian refineries.
Eni plans to combine several assets into a new company
The Italian energy giant has been contemplating plans, along with the rest of the European energy industry, to expand operations and improve overall efficiency at its refineries. The company now plans to spin off several older refineries and assets into the all-new Eni Industrial Evolution (EIE).
The announcement came as several trade unions have praised the company’s intentions, with many groups noting that it will boost Italy’s standing on the global energy stage by combining assets to form the new company.
Eni has submitted all the relevant legal documentation and now awaits the result of the government’s approval process. During a meeting with trade union representatives from Filctem-Cgil, Eni stated that it would spin off several ageing refineries as part of its “satellite” strategy to attract investors and capital.
“The operation includes the refineries of Taranto, Livorno, Sannazzaro, Milazzo [50pc], the research centre, 16 fuel depots and Costiero Gas [the Livorno LPG facility],” – Filctem-Cgil national secretary Antonio Pepe
It should be noted that the biorefineries in Venice and Gela, as well as the Eni Slurry Technology (EST) unit, would not be added to the new company. Following another meeting with the Trade Union Femca Cisl, Eni noted that it would absorb the assets of Eni’s Refining Evolution & Transition business.
“Eni has guaranteed a gradual transition without any unexpected stops in production, confirming the strategic importance of traditional refining to the group,” – Femca Cisl national secretary Sebastiano Tripoli
Eni has also detailed plans to convert a refinery for biofuel production
The company has, over the years, spun off several assets to attract capital and investors to the Italian energy industry. As part of the new “satellite” strategy, Eni plans to convert selected units at the company’s Sannazzaro de’ Burgondi (Pavia) refinery into a biorefinery.
Eni announced that it has received the necessary approval from the Italian Ministry of the Environment and Energy Security for the conversion project at the Sannazzaro de’ Burgondi (Pavia) refinery. The plan includes converting the existing Hydrocracker (HDC2) unit using the innovative Ecofining™ technology.
Additionally, Eni will construct a pre-treatment unit for waste and residues, which is essential to the company’s HVO biofuels. While other nations express their own biofuel facility ambitions, such as Australia, which recently broke ground on its latest biofuel refinery, Eni is fostering a new era of refinery upgrades at its Italian operations.
The upgrading of the company’s refineries in Italy comes as the global energy market shifts its attention from oil and gas production to the more lucrative biofuel production market in an attempt to meet a substantial increase in demand from the international market.
“The growing use of biofuel will be an inestimable contribution to the generation of income, social inclusion and reduction of poverty in many poor countries of the world. – Luiz Inacio Lula da Silva
Eni is aiming to lead the biofuel market in Europe this year
The reality of the current situation across the energy market is that more needs to be done to diversify operations. Eni is perfectly positioned to take full advantage of the situation and lead Italy into a new era of upgraded biofuel refineries. As some nations, such as Mongolia, are set to launch their first-ever refineries, Eni is aiming to lead the European market and develop an impressive portfolio of downstream biofuel production.
