Key Impact Points
- $210 Million Investment: IFC and the Italian Climate Fund invest in Eni’s Kenya subsidiary for advanced biofuels.
- Significant Production Increase: Biofuel feedstock production in Kenya to surge from 44,000 tons to 500,000 tons annually.
- Support for 200,000 Farmers: Investment to benefit small-scale Kenyan oilseed farmers with resources and training.
- Decarbonization Efforts: Aims to decarbonize global transport and boost Kenya’s biofuels industry.
IFC and the Italian Climate Fund have announced a $210 million investment in Eni S.p.A.’s Kenya subsidiary. This investment will expand advanced biofuel production, supporting decarbonization and benefiting up to 200,000 small-scale Kenyan oilseed farmers.
IFC will contribute $135 million, while the Italian Climate Fund will add $75 million under the Italian Government’s Mattei Plan in Kenya. This funding will increase the production and processing capacity of advanced biofuel feedstock, primarily oilseeds, from 44,000 tons to 500,000 tons per year through the construction of new processing plants.
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Quotes
- Makhtar Diop, IFC Managing Director: “This project marks the dawn of a new industry for Kenya… Producing biofuels will not only help decarbonize our transportation system, it will also generate income for farmers and create jobs along the value chain.”
- Claudio Descalzi, Eni CEO: “By partnering with IFC and the Italian Climate Fund, Eni further enhances its agrifeed stock projects in Kenya, expanding its reach to up to 200,000 small-scale Kenyan farmers over the next five years.”
- Gilberto Pichetto, Italy’s Minister of the Environment and Energy Security: “This first operation captures two major priorities: investing in the strategic biofuels supply chain and addressing the growth of Kenya’s agricultural sector with an intervention of undoubted socio-environmental impact.”
Investment Breakdown and Purpose
The $210 million investment by IFC and the Italian Climate Fund will significantly enhance Eni’s biofuel feedstock production in Kenya. The increased production and new processing facilities will support the global transport industry’s decarbonization efforts and improve the livelihoods of small-scale farmers.
Benefits for Farmers
This initiative will provide up to 200,000 Kenyan oilseed farmers with inputs, mechanization, logistics, certification, and training. It will help them cultivate oilseeds on degraded land unsuitable for food production or in rotation with food crops, thereby enhancing soil fertility and boosting agricultural productivity.
Future Implications
The investment is expected to decarbonize transportation by increasing the availability of advanced biofuels. It sets a precedent for similar projects in other African nations, potentially leading to a broader adoption of sustainable practices and greater resilience against climate change. Additionally, IFC will provide advisory services to develop the biofuel value chain and promote sustainable agricultural practices, ensuring the project’s long-term success and replication.
This landmark investment represents a significant step towards sustainable energy and agricultural development in Kenya and beyond, fostering a more resilient and eco-friendly future.
