IFC and Italian climate fund invest in biofuels in Kenya

IFC and the Italian Climate Fund announce a $210 million investment to develop biofuels in Kenya, supporting the decarbonization of transport and the livelihoods of local farmers.

Share:

L'IFC et le Fonds Climat Italien Investissent dans les Biocarburants au Kenya pour aider l'agriculture et les transports.

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

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.

The federal government is granting $370mn to Canadian canola producers affected by a 75.8% tariff imposed by China, and is introducing fiscal and regulatory measures to strengthen the domestic biofuel industry.
Netherlands-based BTG Bioliquids and Canada’s NanosTech join forces to develop a modular solution for advanced biofuel production, with a project underway in Europe and Canada.
Teréga and GRDF have commissioned a backfeed station in Lot-et-Garonne, showcasing their cooperation to adapt gas networks to the rise of locally produced biomethane in Nouvelle-Aquitaine.
An Indonesian ministerial delegation visited China to explore waste-to-energy solutions, as the country moves forward with a $200mn project in Makassar.
Anaergia’s Italian subsidiary has been selected by Nortegas Renovables to build a biomethane facility in Andalusia using agricultural residues.
Mondi SCP will build a new biomass power plant in Ružomberok to boost energy self-sufficiency from 75% to 90% by 2027, with a €120mn ($129mn) investment supported by the European Union’s Modernisation Fund.
With a new EnviThan facility in Aube, EnviTec Biogas reaches 40 units in operation in France and confirms its deployment pace in the biomethane market.
Southwest Gas has submitted an agreement to the California Commission to inject biomethane produced from food and wastewater into its network, in line with SB 1440 regulatory requirements.
Quercus Real Assets and Elionia finalise a €76 mn bank financing to build three biomethane plants in Italy, with 50% of the debt guaranteed by SACE.
VINCI, through its subsidiaries, has established itself in the construction of Spain’s largest second-generation biorefinery, a €1.2bn project aimed at supplying 500,000 tonnes of sustainable fuels per year.
Ameresco commissions a biomethane facility in Lee County, processing 4,500 cubic feet of landfill gas per minute, and directly injects this renewable gas into the transmission network to reduce emissions and strengthen energy security.
A $24mn financing supports the construction of a 4.8 MW biomass plant designed to replace diesel in Opitciwan, bringing jobs and enhanced energy security for the Atikamekw community.
SUEZ and RATP Group formalise a supply contract for 100 GWh of renewable electricity per year, over a maximum period of sixteen years, powering the operations of the world’s third largest urban transport operator.
Valmet has secured a contract to supply a biomass boiler and flue gas cleaning system to Saica Group for its production site in El Burgo de Ebro, Spain, as part of its decarbonisation plan.
Qarlbo Biodiversity signed a memorandum of understanding with Woodland Biofuels for the delivery of thinned pine wood from managed forests in the United States to supply the Canadian company’s biomass operations.
The Canadian group Thermal Energy International has secured a CAD 1.4 million contract to install a heat recovery unit at a European malted barley producer, aiming to reduce energy costs and polluting emissions.
The asset takeover process of Global Bioenergies, under a pre-pack disposal procedure, has been extended until 18 July at noon, following requests from potential bidders seeking additional time to assess the French company's financial situation.
SIAAP and SUEZ have inaugurated a new biogas production unit at the Seine Aval wastewater treatment plant, the largest in Europe, as part of a modernization project to strengthen the energy sovereignty of the Paris region.
Canadian company Hydron Energy will supply its innovative INTRUPTor-Mid technology to produce renewable natural gas in Ontario, marking its first commercial order in the biomethane sector with a promise of significant cost reductions.
US President Donald Trump has ratified a law extending until the end of 2029 the tax credit on renewable natural gas production from biomass and animal manure, aiming to boost the rural economy.

Log in to read this article

You'll also have access to a selection of our best content.