Eni Eyes Recycling Shift at Aging Sicilian Complex

Eni and Versalis plan a Sicilian circular plastics hub as Europe pushes for cleaner, more resilient supply chains

24 Nov 2025

An older petrochemical complex on the Sicilian coast is set for redevelopment as Eni and its chemical subsidiary Versalis advance plans to convert the site into a centre for advanced plastics recycling and renewable fuel production. The proposal is moving through environmental assessment, ahead of a final investment decision.

The move comes as Europe’s recycling sector faces high energy costs, tighter rules and increased imports of low-priced recycled materials. Several operators are struggling to remain profitable, making the scale of the Sicilian project unusual at a time of industry pressure.

Versalis intends to deploy a technology that converts mixed plastic waste into a refined feedstock suitable for new polymers, including food-grade applications. Much of Europe’s plastic waste cannot be processed by conventional mechanical recycling because it contains multiple layers or contaminated material. The company argues the approach could help domestic manufacturers meet regulatory requirements for recycled content while reducing exposure to volatile global markets. Only a small share of plastic waste in Europe is currently usable for high-grade recycling.

Analysts say co-locating advanced recycling with renewable fuel production could offer cost and energy efficiencies by sharing utilities. According to researchers in the circular economy sector, integrated hubs of this type could support the next phase of Europe’s recycling infrastructure.

The project, however, faces hurdles. Advanced recycling technologies require substantial investment, and environmental groups continue to question the long-term emissions profile of chemical processes that break down plastics into their basic components. The initiative will also depend on reliable supplies of suitable waste, a stable regulatory framework and buyers willing to pay a premium for higher-quality recycled plastics.

Despite these challenges, development work at the site is progressing. The plan reflects broader efforts within Europe to update older industrial assets while aligning with environmental goals. If approvals are secured and the economics hold, the Sicilian facility could become a model for similar redevelopments across the region.