IFC (International Finance Corporation) and the Italian Climate Fund announced a US$ 210 million investment in Eni S.p.A.’s Kenya subsidiary to expand the production and processing of advanced biofuels, supporting the decarbonization of the global transport industry and the livelihoods of up to 200,000 small-scale Kenyan oilseed farmers.

The investment consists of US$ 135 million from IFC and US$ 75 million mobilized from the Italian Climate Fund, as part of the implementation of the Italian Government’s Mattei Plan in Kenya. It will help Eni increase both the production of advanced biofuel feedstock grown in Kenya and processing capacity through the construction of new processing plants. Production of oilseeds, which is the primary feedstock, is expected to increase from 44,000 tons to 500,000 tons per year.

The project will also work with farmers, providing inputs, mechanization, logistics, certification, and training to help them produce oilseeds, which are grown on degraded land not suitable for food production and/or grown in rotation with food crops, helping enhance soil fertility.

The agreement was announced at the 2024 Africa CEO Forum in Kigali, Rwanda.

“This project marks the dawn of a new industry for Kenya, an industry where Kenya could become a world leader,” said Makhtar Diop, IFC Managing Director. “Producing biofuels will not only help decarbonize our transportation system, it will also generate income for farmers and create jobs along the value chain. We’re proud to partner with a company like Eni, which is leading the efforts to reduce the carbon footprint of the transport industry.”

“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, and strengthens the country’s integration in the biofuels value chain,” said Claudio Descalzi, Eni CEO. “This cooperation fits with Eni’s model to leverage public-private partnerships to support communities, generate long-term value, and create virtuous, lasting alliances with African countries.”

"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,” said Gilberto Pichetto, Italy’s Minister of the Environment and Energy Security. “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."