Italian energy firm Eni is moving forward with plans for a new biofuel refinery in Sicily that could supply the marine biofuels market.

The company has launched the environmental impact assessment process to convert its industrial site in Priolo into a biorefinery and recycling hub, Eni said in a statement on its website on Thursday.

The project, cleared to proceed by Italy’s Ministry of the Environment and Energy Security, includes a 500,000 mt/year production of hydrogenated vegetable oil (HVO) diesel and SAF from waste oils and residue.

The HVO diesel produced at the plant will be supplied to the road, marine and rail transport sectors.

The site will also feature a hydrogen production unit and a Versalis Hoop chemical recycling plant.

Completion is expected by the end of 2028, marking Eni’s second biorefinery in Sicily after Gela.