IFC (International Finance Corporation) and the Italian Climate Fund announce a $210 million investment in Eni S.p.A.’s Kenyan subsidiary. The investment is aimed at increasing the production and processing of advanced biofuels in Kenya, a key effort to decarbonize the global transport industry and improve the livelihoods of nearly 200,000 Kenyan smallholder farmers. The investment consists of $135 million from the IFC and $75 million from the Italian Climate Fund, as part of the Italian government’s Mattei Plan for Kenya. The aim is to increase biofuel feedstock production from 44,000 tonnes to 500,000 tonnes a year, and to boost processing capacity by building new plants.
Economic and environmental impact
This project supports Kenyan farmers by providing inputs, mechanization, logistics, certification and training for oilseed production. These crops, grown on degraded land unsuitable for food production or in rotation with food crops, help to improve soil fertility. Making the announcement at the Africa 2024 CEO Forum in Kigali, IFC Managing Director Makhtar Diop said, “This project marks the dawn of a new industry for Kenya, where the country could become a world leader. Producing biofuels will not only help decarbonize our transport system, but will also generate income for farmers and create jobs along the value chain.” Eni CEO Claudio Descalzi added: “By collaborating with IFC and the Italian Climate Fund, Eni is strengthening its agribusiness projects in Kenya, reaching up to 200,000 Kenyan smallholder farmers over the next five years and integrating the country into the biofuels value chain.”
Global Perspectives and Sustainable Development Goals
Global demand for biofuels has been growing by almost 6% a year over the past five years, as the transport industry looks for solutions to decarbonize. In a carbon-neutral scenario by 2050, the use of biofuels in transport should more than double to 9% by 2030. Although the production of sustainable biofuels is currently more expensive than traditional fuels, costs are set to fall as capacity increases and technology advances. The success of this project could open up opportunities for replication elsewhere in Africa, supporting the development of the continent’s biofuels industry. The Italian Climate Fund, through Cassa Depositi e Prestiti (CDP), finances public and private projects in emerging and developing countries, helping to achieve international climate and environmental goals. By supporting farmers and increasing biofuel production, this project aims to create sustainable environmental and socio-economic benefits.
