Italian energy group Eni has committed to investing €2 billion ($2.2 billion) over the next five years to decarbonize and revitalize its chemicals subsidiary, Versalis. The investment is aimed at transforming the company’s focus away from basic chemicals, which have been struggling in Europe, and towards more sustainable areas such as biochemicals and energy storage.
"Eni aims to significantly reduce Versalis' exposure to basic chemicals, a sector that is facing structural and irreversible decline in Europe," the company said in a statement. Versalis has reported losses totaling nearly €7 billion over the past 15 years, highlighting the need for a strategic shift.
Restructuring and New Focus Areas
Versalis will be reorganized into four key areas: biochemicals, downstream operations, circular economy initiatives, and a smaller division dedicated to basic chemicals. The restructuring will also involve the phasing out of operations at some of Eni's major cracking plants in southern Italy, including facilities in Brindisi, Priolo, and a polyethylene plant in Ragusa, all located in economically challenged regions of the country.
As part of its transition, Eni plans to establish new industrial sites focused on sustainable chemistry, biorefining, and energy storage, furthering the company’s goals of reducing emissions and supporting greener technologies.
Emission Reduction Targets
The restructuring aims to cut Versalis' carbon emissions by around 1 million tonnes of CO2, which represents approximately 40% of its total emissions in Italy.
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