The International Finance Corporation (IFC) and the Italian Climate Fund have jointly announced a significant investment of $210 million in Eni S.p.A.'s Kenya subsidiary
The International Finance Corporation (IFC) and the Italian Climate Fund have jointly announced a significant investment of $210 million in Eni S.p.A.'s Kenya subsidiary. The funding aims to expand the production and processing of advanced biofuels, supporting the decarbonization of the global transport industry and benefiting up to 200,000 small-scale Kenyan oilseed farmers.
The investment package comprises $135 million from IFC and an additional $75 million mobilized from the Italian Climate Fund. This strategic move aligns with the implementation of the Italian Government’s Mattei Plan in Kenya. Eni, a leading energy company, will utilize these funds to enhance both the production of advanced biofuel feedstock grown in Kenya and the processing capacity through the construction of new processing plants. Anticipated outcomes include a significant increase in oilseed production—from the current 44,000 tons to an impressive 500,000 tons per year.
The project’s impact extends beyond production facilities. Eni will collaborate closely with local farmers, providing critical support such as inputs, mechanization, logistics, certification, and training. These efforts aim to empower farmers to cultivate oilseeds on degraded land that is unsuitable for food production or in rotation with food crops, thereby enhancing soil fertility.
The landmark agreement was unveiled at the 2024 Africa CEO Forum in Kigali, Rwanda, held earlier in May.
“This initiative marks the dawn of a new industry for Kenya—one where the country could emerge as a global leader,” IFC Managing Director, Makhtar Diop, said, expressing optimism about the project’s potential. “By producing biofuels, we not only contribute to decarbonizing the transportation system but also generate income for farmers and create jobs along the entire value chain. We are proud to partner with Eni, a company at the forefront of efforts to reduce the carbon footprint of the transport industry.”
Partnership for development
Eni’s CEO, Claudio Descalzi, emphasized the broader impact of the collaboration: “Through our partnership with IFC and the Italian Climate Fund, Eni will expand its agrifeed stock projects in Kenya, reaching up to 200,000 small-scale Kenyan farmers over the next five years. This aligns with our model of leveraging public-private partnerships to support communities, create long-term value, and establish lasting alliances with African countries.”
Italy’s Minister of the Environment and Energy Security, Gilberto Pichetto Fratin, welcomed the operation of the Italian Climate Fund, managed by Cassa Depositi e Prestiti.
“This first operation, in line with the inspiring principles of the Mattei Plan, captures two major priorities: investing in the strategic biofuels supply chain, which is decisive for the future of transportation, and addressing the growth of the Kenya's agricultural sector with an intervention of undoubted socio-environmental impact, strengthening resilience to climate change.”
Biofuels for sustainable energy
The global demand for biofuels has surged by nearly 6 percent annually over the past five years. In a net-zero emissions scenario by 2050, biofuel usage in transportation is projected to more than double, reaching 9 percent by 2030. While sustainable biofuel production currently incurs higher costs than traditional fuels, ongoing capacity expansion and technological advancements are expected to drive down costs. The $210 million investment will play a pivotal role in supporting these efforts.
IFC’s advisory services will complement the investment by promoting good agricultural practices and professionalizing farmer aggregators within Kenya’s advanced biofuel value chain. Additionally, all of Eni’s biofuel feedstock will receive International Sustainability and Carbon Certification (ISCC), a globally recognized standard with rigorous environmental, social, and economic sustainability criteria audited across the entire supply chain. The success of this project could pave the way for similar initiatives elsewhere in Africa.
The Italian Climate Fund’s loan, facilitated by Cassa Depositi e Prestiti, underscores Italy’s commitment to financing climate-friendly projects in emerging and developing countries. The fund aligns with Italy’s international climate commitments, emphasizing the importance of sustainable development and environmental stewardship.
The investment package comprises $135 million from IFC and an additional $75 million mobilized from the Italian Climate Fund. This strategic move aligns with the implementation of the Italian Government’s Mattei Plan in Kenya. Eni, a leading energy company, will utilize these funds to enhance both the production of advanced biofuel feedstock grown in Kenya and the processing capacity through the construction of new processing plants. Anticipated outcomes include a significant increase in oilseed production—from the current 44,000 tons to an impressive 500,000 tons per year.
The project’s impact extends beyond production facilities. Eni will collaborate closely with local farmers, providing critical support such as inputs, mechanization, logistics, certification, and training. These efforts aim to empower farmers to cultivate oilseeds on degraded land that is unsuitable for food production or in rotation with food crops, thereby enhancing soil fertility.
The landmark agreement was unveiled at the 2024 Africa CEO Forum in Kigali, Rwanda, held earlier in May.
“This initiative marks the dawn of a new industry for Kenya—one where the country could emerge as a global leader,” IFC Managing Director, Makhtar Diop, said, expressing optimism about the project’s potential. “By producing biofuels, we not only contribute to decarbonizing the transportation system but also generate income for farmers and create jobs along the entire value chain. We are proud to partner with Eni, a company at the forefront of efforts to reduce the carbon footprint of the transport industry.”
Partnership for development
Eni’s CEO, Claudio Descalzi, emphasized the broader impact of the collaboration: “Through our partnership with IFC and the Italian Climate Fund, Eni will expand its agrifeed stock projects in Kenya, reaching up to 200,000 small-scale Kenyan farmers over the next five years. This aligns with our model of leveraging public-private partnerships to support communities, create long-term value, and establish lasting alliances with African countries.”
Italy’s Minister of the Environment and Energy Security, Gilberto Pichetto Fratin, welcomed the operation of the Italian Climate Fund, managed by Cassa Depositi e Prestiti.
“This first operation, in line with the inspiring principles of the Mattei Plan, captures two major priorities: investing in the strategic biofuels supply chain, which is decisive for the future of transportation, and addressing the growth of the Kenya's agricultural sector with an intervention of undoubted socio-environmental impact, strengthening resilience to climate change.”
Biofuels for sustainable energy
The global demand for biofuels has surged by nearly 6 percent annually over the past five years. In a net-zero emissions scenario by 2050, biofuel usage in transportation is projected to more than double, reaching 9 percent by 2030. While sustainable biofuel production currently incurs higher costs than traditional fuels, ongoing capacity expansion and technological advancements are expected to drive down costs. The $210 million investment will play a pivotal role in supporting these efforts.
IFC’s advisory services will complement the investment by promoting good agricultural practices and professionalizing farmer aggregators within Kenya’s advanced biofuel value chain. Additionally, all of Eni’s biofuel feedstock will receive International Sustainability and Carbon Certification (ISCC), a globally recognized standard with rigorous environmental, social, and economic sustainability criteria audited across the entire supply chain. The success of this project could pave the way for similar initiatives elsewhere in Africa.
The Italian Climate Fund’s loan, facilitated by Cassa Depositi e Prestiti, underscores Italy’s commitment to financing climate-friendly projects in emerging and developing countries. The fund aligns with Italy’s international climate commitments, emphasizing the importance of sustainable development and environmental stewardship.
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