Versalis will close the last two steam crackers in Italy to improve its carbon footprint and profitability

Italy will soon lose its last two steam crackers, owned by Versalis, the petrochemical subsidiary of energy company Eni. After the closure of Porto Marghera in 2022, those of Brindisi (in the Puglia region) and Priolo (in Sicily) will be shut down. In 2021, they had respective capacities of 440,000 t/year of ethylene for Brindisi and 530,000 t/year for Priolo, according to the Petrochemicals Europe association. In their wake, the Ragusa polyethylene production site, located in Sicily, will also be shut down.

An in-depth restructuring of Versalis

These closures are part of a broader restructuring program for Versalis, which will involve 2 billion euros of investment over the next five years. The entity is not profitable enough. Eni particularly wishes to significantly reduce its exposure to basic chemicals, a sector in structural decline in Europe, having generated nearly 7 billion euros in financial losses over the last fifteen years, including 3 billion over the last five years alone. There are also fewer and fewer candidates for the production of basic chemicals in Europe. But how can we establish sovereignty for the entire chemical sector in Europe, so as to no longer be subject to supply disruptions for strategic molecules, if upstream production is no longer assured? In addition to the objective of restoring profitability, the plan also aims to reduce CO emissions₂

of Versalis in Italy of around 1 million tonnes of CO₂

or 40%, compared to current emissions, in accordance with the objectives set by Europe.

A neglected basic chemistry

Versalis will therefore abandon its base chemistry to refocus on a portfolio of products with higher added value, containing specialty polymers and products from biochemistry and the circular economy. In return for the closure of installations, we could see the creation of new industrial installations for sustainable chemistry, biorefining and energy storage. For example, in Brindisi, the group will compensate for the closure of the steam cracker with mechanical recycling and production in the field of batteries. Priolo will turn to biorefining and chemical recycling.

From now on, Versalis chemistry will be structured around four main types of activities: Biochemicals (including Novamont), Downstream (with the acquisitions of Finproject and Tecnofilm), Circularity (development of chemical and mechanical recycling), and basic chemicals (via rationalization and repositioning on polymers).