Ludoil Energy signs agreement to acquire ISAB

The transaction is structured in two phases, the first of which concerns a 51% stake and is subject, among other things, to the successful completion of the notification process to be initiated before the Italian Government pursuant to the legislation on special powers regarding activities of national strategic importance (Legislative Decree 21/2012, the so-called Golden Power), as well as the obtaining of applicable antitrust and regulatory authorisations.

The plant, located in the province of Syracuse, in the municipalities of Priolo Gargallo, Augusta, and Melilli, is the largest refining complex in Italy, with a licensed capacity of 20 million tpy and a balanced capacity of 15 million tpy, and represents a strategic infrastructure for national energy security. With this transaction, a key industrial asset for the country will return to Italian management.

The acquisition marks the beginning of a new phase for ISAB, which will transform into an energy company with an integrated portfolio ranging from crude oil processing to advanced bioenergy, establishing itself as a strategic hub for energy flows between Europe, Africa, the Americas, and the Middle East. Management will be based on a model based on the creation of shared value, enabling ISAB to strengthen its role in safeguarding supplies and continue to generate prosperity for the region and the country.

In the medium term, the industrial focus will be on advanced bioprocessing. The plan envisions the progressive introduction of new supply chains dedicated to the production of Hydrotreated Vegetable Oil (HVO), Sustainable Aviation Fuel (SAF), Bio-Oil, second-generation bioethanol, and BioETBE: a comprehensive set of renewable energy sources in line with European decarbonisation guidelines.

The investments will be structured in accordance with the requirements of the European RED III Directive, confirming the group's commitment to sustainability standards recognised on international markets. In addition to the bio-based component, the site already has a 540 MW power and cogeneration plant and will benefit from the construction of new renewable energy plants with an additional 20 MW. This trajectory is part of a broader evolution of the Priolo industrial district, which has already seen significant investments in biorefining, contributing to the Syracuse area's position as a key hub for the energy transition in the Mediterranean.

Regarding employment, the current workforce will be fully maintained. ISAB represents a wealth of engineering expertise developed over decades of operations in Sicily, the historic heart of Italy's refining and petrochemical industry. This nationally recognised excellence, which Ludoil intends to leverage and project internationally, will also generate additional employment opportunities for the region, including through synergies with education and research.

The complementarity between Ludoil's commercial and infrastructural capabilities and ISAB's industrial expertise will enable vertical integration of the supply chain, from procurement to downstream and distribution. The Group's assets include coastal depots, logistics infrastructure, a network of fuelling stations, and a diversified mix of renewable energy generation plants, from biomethane to photovoltaic and wind power.

The transaction positions Ludoil as Italy's leading private multi-energy company, with expected consolidated revenues exceeding €10 billion annually, placing the Group among Italy's leading operators by revenue and a key player in the transformation of the national energy system.

Read the article online at: https://www.hydrocarbonengineering.com/refining/15052026/ludoil-energy-signs-agreement-to-acquire-isab/