Update: Eni sets out ‘transformation, decarbonisation, relaunch’ plan for Versalis

San Donato Milanese, Italy – Eni has finalised a previously signalled transformation and relaunch plan for its Versalis chemicals & polymers business, the Italian energy & petrochemicals group announced 24 Oct.

Under a 2024-2027 strategic plan, Eni said it plans to invest about €2 billion in the business and reduce CO2 emissions by about 1 million tonnes – about 40% of Versalis' emissions in Italy.

The programme, it stated, includes “the set-up of new industrial plants consistent with the energy-transition and decarbonisation of industrial sites across sustainable chemistry, as well as biorefining 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 statement continued.

According to the Italian group, its basic chemicals activities have incurred losses of almost €7 billion over the last 15 years, including €3 billion in the last five years.

To enable the construction of the new plants, activity at the cracking plants in Brindisi and Priolo, and the polyethylene plant in Ragusa, will be phased out, added Eni.

Nevertheless, the group expects the transformation to have a “positive impact on employment, counteracting the impacts of inevitable negative consequences that the structural and consolidated crisis of the sector in Europe.”

To be fully implemented by 2029, the plan “envisages the development of new chemical platforms in renewables, circular and specialised products, growing markets in which Versalis has acquired a leading position.”

Subsequent comments by Eni CT&FO Francesco Gattei, 25 Oct:

The future platforms of Versalis will have a significantly different profiles – one focussed on a high-value downstream portfolio of compounding and specialized polymers, one on biochemistry, and on the circular economy – a portfolio more consistent with Eni’s technology-led strategy focussed on competitively advantaged businesses into the transition.

• This transformation can leverage the resources of a highly skilled workforce but dedicate it to higher value and more sustainable activities.
• At Priolo we are evaluating constructing a bio-refinery for SAF and a chemical recycling plant employing our HOOP technology.
• At Brindisi we target to continue polymer manufacture by using cost advantaged imported raw materials and we will convert part of the site to the construction of a new factory facility for the manufacturing of stationary networked batteries.
• In the meantime, we plan to shut-down cracking at both Priolo and Brindisi. We will also look to exit or significantly reduce our exposure at Dunkirk. This is a necessary response to the structural disadvantage European basic chemicals manufacturing faces versus other regions.
• And we will reduce polymer capacity by ceasing polyethylene production at Ragusa. You will be aware we closed operations at Grangemouth earlier this year. Further initiatives to drive efficiency in polymers might also be taken.
• The European chemicals industry has further deteriorated in 2024 and it is not expected to improve in 2025. In this context our expectation is to move to positive EBIT in 2027 and FCF breakeven in 2028.