The Italian Climate Fund (IFC) and Eni S.P.A. today announced a $210 million investment to expand advanced biofuel production and processing at the Kenyan subsidiary of Eni S.P.A. This will support the livelihoods of up to 200,000 small-scale oilseed farmers in Kenya, as well as the decarbonisation of industry worldwide.
The investment consists of $135 million from IFC and $75 million from the Italian Climate Fund to implement the Italian Government’s Mattei Plan in Kenya.
It will help Eni increase the production and processing capacity of advanced biofuel feedstock grown in Kenya by constructing new processing plants. Production of oilseeds, the primary feedstock, is expected to increase from 44,000 tons to 500,000 tons annually.
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Oilseeds are produced on degraded land unsuitable for food production and farmed in rotation with food crops to help improve soil fertility. The initiative will also work with farmers, offering them inputs, mechanisation, logistics, certification, and training to assist them in producing oilseeds.
The agreement was announced at the 2024 Africa CEO Forum in Kigali, Rwanda.
Eni Strengthens Kenya Biofuels Value Chain
Eni’s CEO, Claudio Descalzi, stated that by collaborating with the Italian Climate Fund and the IFC, the company strengthens the integration of Kenya in the value chain for biofuels and improves its agreed stock projects in Kenya, reaching up to 200,000 small-scale Kenyan farmers over the next five years. This collaboration is consistent with Eni’s strategy of using public-private partnerships to improve communities, produce long-term value, and forge honourable, enduring relationships with African nations.
The Italian Climate Fund and the IFC are partners in Eni’s cooperation to further improve its agreed stock projects in Kenya. Over the next five years, this partnership will reach up to 200,000 small-scale Kenyan farmers, further strengthening Kenya’s integration into the biofuels value chain. Claudio Descalzi, CEO of Eni, said as much. “This collaboration matches Eni’s approach of utilising public-private partnerships to uplift communities, produce enduring value, and establish honourable, long-lasting relationships with African nations.”
The Italian Minister of the Environment and Energy Security, Gilberto Pichetto Fratin, stated, “We welcome this first operation of the Italian Climate Fund established at the Ministry of the Environment and Energy Security and managed by Cassa Depositi e Prestiti.” “This first operation, in line with the inspiring principles of the Mattei Plan, captures two major priorities: addressing the growth of Kenya’s agricultural sector with an intervention of undeniable socio-environmental impact, improving resistance to climate change, and investing in the strategic biofuels supply chain, which is decisive for the future of transportation.”
Improving the Production of Sustainable Biofuels”
Over the past five years, the demand for biofuels has grown globally by around 6% per year as the transportation sector searches for ways to reduce its carbon footprint. The usage of biofuels in transport is predicted to more than quadruple to 9% by 2030 in a scenario with net zero emissions by 2050. Even while sustainable biofuels now cost more than traditional fuels, costs should decrease as more capacity is added and technology progresses. This new investment will aid these initiatives.
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IFC will also provide advisory services that will support the development of the advanced biofuel value chain in Kenya, including promoting good agricultural practices and the professionalisation of farmer aggregators. ENI’s biofuel feedstock will receive International Sustainability and Carbon Certification (ISCC). ISCC is a globally recognised biofuel scheme with rigorous environmental, social, and economic sustainability standards audited across the supply chain. The project’s success can open up opportunities for replication elsewhere in Africa.
The fund manager, Cassa Depositi e Prestiti, is responsible for providing the loan for the Italian Climate Fund. By Italy’s international climate commitments, the climate fund established by the Italian government (Fondo Italiano per il Clima) is intended to support public and private initiatives in emerging and developing nations that help them meet their environmental and climatic goals.